I am not a trader and never will be. I am interested in parking money and watching it grow. I’m currently in a weird spot where I have decent savings but I’m cash flow negative (daycare is fucking expensive). I will likely not be cash flow positive until 4 years from now.
Doing the calculations I have enough savings to get through this period and have a modest rain day fund leftover assuming no raises, we keep our jobs, no big expenses and being financially disciplined.
So what do I do with my savings in the meantime? On one hand the S&P just hit an all time high. On the other hand the whole market fluctuates wildly with the news and the news is up and down every day, except for some reason the market stopped caring about oil recently. I’m also worried about an AI hype bubble though I do believe AI is the real deal.
The financial advisor says it’s ok to park some money in S&P that I won’t need for 2 years and not to worry about AI bubble.
I also see that consumer is the lowest it’s ever been. I see people saying that the market is over extended more than the pandemic and dot com bubbles according to the buffet index.
I have been avoiding putting any money in because I’m believing the negative news more than the actual market trend.
Am I smart to be safe or am I being stupid?
Posted by QuantumDreamer41
3 Comments
Timing market is a fool’s errand until it isn’t. If really worried park in money market like SPAXX for a season.
Investing for 4-5 decades from now there is only one answer. Keep investing regularly and into the market fully using low-cost broad index funds. The tougher decision is investing for 5-10 years from now. That takes some investigation.
Put some in VOO and put some in a money market account for your rainy day fund.