Where to "Stash the Cash" now?

[Mario666]

Dear All,

 

We are all in a mire of Financial and Business uncertainty on a Global Scale.

 

Fortunately, I saw the Covid-19 Financial "Tsunami" coming and on February 18th moved all my stocks and pensions into cash.

 

However, I am still in cash and having retired some time ago I wonder what and where you might feel is a good place to invest.

 

My "Crystal Ball" has gone Murky! 

 

My investments/pensions were pretty much all FTSE based (UK) with some US stocks also, but I would have taken a massive hit if I stood still.

 

Now I have cash, but no income....I am not "Loaded" but comfortable!

 

Any ideas???

 

Most comments gratefully received I hope!...I have asked questions on here before! 

 

Edited September 22, 2020 by Mario666
Typo

[GeorgeCross]

stocks VWRL 70%

bonds VAGP 20%

10% gold hedge

 

cash split 3 ways - £ $ Bht

 

 

 

 

[Rookiescot]

You could have a look at agrochemicals.

Syngenta is a good place to start. Look at the share price over the last ten years. Its a long term investment but low risk.

[Brunolem]

One word: diversify!

 

Fixed deposits (less and less), gold bars, prime real estate, bonds, and even cows!

 

Bitcoins and similar crypto may be interesting, for those willing to involve themselves in these rather complicated investments.

 

We are heading toward a huge, worldwide, economic crisis, and like a ship in the middle of a giant tempest, it is difficult to anticipate where the winds and the sea are going to lead us.

 

There is also a "great reset" coming to us, thanks to the Davos people (on their 2021 menu), and there are reasons to worry about this scheme.

[Mario666]

3 minutes ago, GeorgeCross said:

stocks VWRL 70%

bonds VAGP 20%

10% gold hedge

 

cash split 3 ways - £ $ Bht

 

 

 

 

Thanks George, but please can you decipher for me...I was in software sales....not Finance???? 

[NightSky]

10 minutes ago, GeorgeCross said:

stocks VWRL 70%

bonds VAGP 20%

10% gold hedge

 

cash split 3 ways - £ $ Bht

 

 

 

 

This looks good to me for a retiree.

 

For timings I would remain in cash for now and begin with gold when it nears 1800usd/oz and wait until early 2021 for the start of the next multi year bull market to drip feed into stocks and bonds.

 

 

 

 

 

Edited September 22, 2020 by NightSky

[Mario666]

1 minute ago, Brunolem said:

One word: diversify!

 

Fixed deposits (less and less), gold bars, prime real estate, bonds, and even cows!

 

Bitcoins and similar crypto may be interesting, for those willing to involve themselves in these rather complicated investments.

 

We are heading toward a huge, worldwide, economic crisis, and like a ship in the middle of a giant tempest, it is difficult to anticipate where the winds and the sea are going to lead us.

 

There is also a "great reset" coming to us, thanks to the Davos people (on their 2021 menu), and there are reasons to worry about this scheme.

Thanks for that...As I said I am in cash and even then with numerous Banks....I have looked at the Weiss stuff and they are pushing GOLD, but I lost before on GOLD over a 5 year period!....I am not a young boy, so people telling me to invest in "Long Term" stocks is not appealing anymore!

[NightSky]

Just now, Mario666 said:

.I am not a young boy, so people telling me to invest in "Long Term" stocks is not appealing anymore!

 

If stocks are not your thing...

 

Unless you have enough to invest in rent paying property and want to generate income and an asset to pass on as a legacy..

 

The only real alternative as I see it is a fixed income fund or..

 

A lifestyle business or..

 

Remain in cash and enjoy it.

[Destiny1990]

Try ur luck in a Cambodian Casino !

[GeorgeCross]

24 minutes ago, Mario666 said:

Thanks George, but please can you decipher for me...I was in software sales....not Finance???? 

so vwrl and vagp are both vanguard index ETFs (they are their ticker symbols so you can google them - vanguards site is very good and breaks them down perfectly)

 

vwrl is all world stocks - doesnt get anymore diversified than that. its domiciled in ireland so perfect for uk or offshore holdings. if you are US an equivalent would be VTI also from vanguard 

 

vagp is all world bonds - again from vangaurd and domiciled in ireland (both trade on LSE btw in pounds) - mix of treasuries, mortgage and corporate bonds. US equivalent would be BND

 

i use the gold as a hedge for catastrophe insurance - it has a tendancy to dive in a big crash (like in march) but like the bonds recovers much faster and higher than the stocks as a side effect of the inevitable post-crash central bank intervention (rescue!)

 

the stocks are for long term growth. you could substitute this for VUSA (S&P500 index tracker ETF) if you fancied more "pep" but it also comes with more volatility. personally i like to read the financial news with a passing "meh" rather than "oh shït!" moments but each to their own lol

 

 

[4MyEgo]

44 minutes ago, Mario666 said:

Fortunately, I saw the Covid-19 Financial "Tsunami" coming and on February 18th moved all my stocks and pensions into cash.

Wish I could see that "Tsunami" coming as I am now 50% down on most of my blue chip stocks and most dividends have been cancelled too, that said, I have enough in reserves (bank) to keep me going for another 4 years before I have to start selling some shares at either a loss or profit, hopefully the latter.

 

45 minutes ago, Mario666 said:

Now I have cash, but no income....I am not "Loaded" but comfortable!

Work out what it costs you to survive per month and maybe you will see that there is enough there for you to survive on till you pop your clogs so to speak.

 

24 minutes ago, Mario666 said:

As I said I am in cash and even then with numerous Banks.

Like I said, maybe start living off of your cash as I wouldn't be wanting to be investing in anything at the moment, too risky with a lot of the unknowns.

[Stocky]

54 minutes ago, Mario666 said:

Any ideas???

Speak to an independent financial adviser 

[Mario666]

Thanks again George!

 

I can bide my time and now understand your comments having Googled the stuff.

 

With what's happening today even as we speak I am glad to be in CASH!....Luvverly! 

 

 

[Mario666]

S

2 minutes ago, 4MyEgo said:

Wish I could see that "Tsunami" coming as I am now 50% down on most of my blue chip stocks and most dividends have been cancelled too, that said, I have enough in reserves (bank) to keep me going for another 4 years before I have to start selling some shares at either a loss or profit, hopefully the latter.

 

Work out what it costs you to survive per month and maybe you will see that there is enough there for you to survive on till you pop your clogs so to speak.

 

Like I said, maybe start living off of your cash as I wouldn't be wanting to be investing in anything at the moment, too risky with a lot of the unknowns.

Thanks Mate,

 

I think you are right.....I am even holding cash in Sterling, Thb and US $ 

 

If they all go down the tubes I will have to go back to subsistence......Fortunately my house is on a beach on Samui so fishing it will be! 

[Matzzon]

I would not play for the money, but put them into stock market in land based gambling. Here we have casinos and resorts of great magnitude that has been closed and lost their value on the stock market. What you really can trust is that both virtual and land based gambling is coming back. That as well as a certain expansion prognosed until 2030 makes it a sure bet. But be sure to only invest in the big and established hotel and casino groups. 

For example Century Casinos, Caesars and Las Vegas Sands. All are chosen from the American gambling market, due to that is the one that are growing fastest in the world at present time. Mean that you are making money on gambling instead of gambling the money away. ???? 

If you want a real ride, then you go for 25% in the Colombian gambling market as well.

Edited September 22, 2020 by Matzzon

[Rookiescot]

1 hour ago, Rookiescot said:

You could have a look at agrochemicals.

Syngenta is a good place to start. Look at the share price over the last ten years. Its a long term investment but low risk.

I see my post has attracted the attention of my local stalker who gave it a laugh emoji.

Obviously as an ex cab driver he feels compelled to get involved in a post about investments.

[bwpage3]

A friend of mine who is the author of 4 financial books (more coming) and a PhD, has made over US $1,000,000 in the stock market since COVID started. He is in his early 40's and retired doing nothing but authoring books and making a mint in the market.

 

That's the difference between a world class expert and someone who saw a financial tsunami coming.

 

[Andy from Kent]

1 hour ago, NightSky said:

Unless you have enough to invest in rent paying property and want to generate income and an asset to pass on as a legacy..

 

For a retiree that doesn't want to focus on the long term?

 

Rental property could just  represent a new job for the OP.

 

[Lacessit]

I am sticking with cash for the time being. I have some funds in peer - to -peer lending, still doing OK. As loans get paid off there,I don't re-invest it.

No money in the share market. I'm expecting serious convulsions during the presidential elections, and I have target prices on the quality stocks I will buy in the event of a severe downturn.

[Lacessit]

4 minutes ago, Andy from Kent said:

 

For a retiree that doesn't want to focus on the long term?

 

Rental property could just  represent a new job for the OP.

 

Rental property where? In Chiang Mai, landlords can't find tenants.

[Mario666]

17 minutes ago, bwpage3 said:

A friend of mine who is the author of 4 financial books (more coming) and a PhD, has made over US $1,000,000 in the stock market since COVID started. He is in his early 40's and retired doing nothing but authoring books and making a mint in the market.

 

That's the difference between a world class expert and someone who saw a financial tsunami coming.

 

Thank you for your reply.

 

I am sure your Doctor friend also saw the "Financial Tsunami" coming?

 

Perhaps you could share his name and his "bibliography" for the benefit of the Forum???

[Mario666]

2 minutes ago, Lacessit said:

I am sticking with cash for the time being. I have some funds in peer - to -peer lending, still doing OK. As loans get paid off there,I don't re-invest it.

No money in the share market. I'm expecting serious convulsions during the presidential elections, and I have target prices on the quality stocks I will buy in the event of a severe downturn.

Thanks for your reply.....I agree and can stay in cash for a year or two or as long as it takes?....As a friend of mine said it is better to stand still than go backwards during these times!

 

It was just bred into me to make the money work for you once you have made it, but these are unprecedented times! 

 

I wish you all good luck! 

[stouricks]

1 hour ago, Stocky said:

Speak to an independent financial adviser 

Absolutely NOT. If a Financial Adviser is so good, why is he advising others what to do with THEIR money and not doing it with his own. He is only in it for the COMMISSION he gets for persuading YOU to invest where he gets the most moolie. Been there and suffered.

[Brunolem]

1 hour ago, bwpage3 said:

A friend of mine who is the author of 4 financial books (more coming) and a PhD, has made over US $1,000,000 in the stock market since COVID started. He is in his early 40's and retired doing nothing but authoring books and making a mint in the market.

 

That's the difference between a world class expert and someone who saw a financial tsunami coming.

 

Surfing the tsunami of money unleashed by the Federal Reserve has nothing to do with being a world class expert!

 

Thousands of "Robinhooders", led by Dave Portnoy, a professional gambler, have also made a killing surfing the same wave. 

 

Financial markets these days have more in common with casinos than with investing.

 

Thus, those willing to play better have a gambler's state of mind, rather than that of a traditional investor... 

[Why Me]

1 hour ago, Mario666 said:

.I agree and can stay in cash for a year or two or as long as it takes?

It never makes sense to stay wholly in cash. Because you (nor anyone else in the world) can know when the market hits bottom. If there existed a technology to time the market there would be heckuva lot more billionaires in the world.

 

Moreover, if you stay in cash sooner or later the market rebound will leave you behind. Or just plain inflation will.

 

Couple of points to note re the US stock market (I guess most Western markets are same) from nearly a century of data:

1. Long term the total market gains approx 7%/annum (inflation adjusted).

2. Recessions last on average less than 24 mths.

 

Based on this there is a simple 2-bucket strategy. Keep cash to tide over a couple of years and the rest in a total market index fund. I did this, kept all but about $20k in Fidelity's FSKAX and my holdings have tripled in worth over the last 10 years.

 

A beauty of this strategy is that it's utterly simple and stress-free. No need to worry about the price of this or that falling (because like I said a century's worth of data says you will be good). Icing on the cake is index funds are near 0 commission so you keep all you make. But I still check my net worth every night. Because it makes me horny.

 

Added: Withdrawal from the market holding? I haven't had to do this yet. But my own calculations (based on programs I wrote using post-WW2 market data) suggests 2%/annum at zero risk to 4%/annum at moderate risk.

Edited September 22, 2020 by Why Me

[tweedledee2]

  You saw the market spiraling downward on Feb 18, but didn't forecast the turn around in mid-May. Sorry, but you lost money. You should have bought instead of sold. It will cost you more money to reinvest. I learned many years ago to never try to predict the market. Even experts fail. 

   I have an IRA with TRowe Price that has a 1-year return of 15.44%, a year to date of 7.81% and the last quarter of 25.45%. This IRA was rolled over from my self funded TRP 401k company retirement plan account and I haven't withdrawn any money since opening the original 401k.     

[Lacessit]

1 hour ago, stouricks said:

Absolutely NOT. If a Financial Adviser is so good, why is he advising others what to do with THEIR money and not doing it with his own. He is only in it for the COMMISSION he gets for persuading YOU to invest where he gets the most moolie. Been there and suffered.

Agree. It's like the people who run courses on share, option and contract for difference trading. If you are that good at it, why would you tell me how to do it?

[Pravda]

4 hours ago, Mario666 said:

Dear All,

 

We are all in a mire of Financial and Business uncertainty on a Global Scale.

 

Fortunately, I saw the Covid-19 Financial "Tsunami" coming and on February 18th moved all my stocks and pensions into cash.

Wow... Fail

[Tounge Thaied]

Volatility will remain until you go get your Dr. Gates jab.

[Mario666]

9 hours ago, tweedledee2 said:

  You saw the market spiraling downward on Feb 18, but didn't forecast the turn around in mid-May. Sorry, but you lost money. You should have bought instead of sold. It will cost you more money to reinvest. I learned many years ago to never try to predict the market. Even experts fail. 

   I have an IRA with TRowe Price that has a 1-year return of 15.44%, a year to date of 7.81% and the last quarter of 25.45%. This IRA was rolled over from my self funded TRP 401k company retirement plan account and I haven't withdrawn any money since opening the original 401k.     

 

Many thanks for your reply.

 

On the contrary if you check back you will see that at the time I withdrew to cash the markets were peaking......But I was watching the Wuhan situation daily and realised that the Sh!te was going to hit the fan sooner or later!

 

At the time it wasn't being widely reported in the West and so the markets were a little slow to react. I have no regrets about getting out of the "Blue-Chips" I was in as even now I would have taken a severe battering.

 

Obviously, it would have been great to have some "Crystal Ball" to predict the TECH STOCK rally, but I am not clairvoyant and also notice that tech stocks have also taken a big hit again now!

 

Wouldn't it be great to invest now in the "Bio-Tech" company which eventually produces the "Magic Pill"? 

 

However, these are unprecedented times in terms of world markets. There may never be a cure, vaccine or call it what you want and so to point back and say the markets will recover based on history is not really the answer I was looking for.

 

I own 2 large properties in the UK which provide me with a generous income (ironically they are rented by medical doctors) so that is fortunate under the circumstances....I do not think they will be getting laid off anytime soon!

 

Those who point back to historical market trends and say stay in for the long term and you will make money may be right, but I am 62 now, so just how "Long" is the "Long Term"?????

 

As my Nan used to say "There are no pockets in a shroud".

 

You wrote "I have an IRA with TRowe Price that has a 1-year return of 15.44%, a year to date of 7.81% and the last quarter of 25.45%. This IRA was rolled over from my self funded TRP 401k company retirement plan account and I haven't withdrawn any money since opening the original 401k."

 

That sounds great. Please can you explain to an amateur like me exactly what that means?

 

Many thanks again in advance for your next reply.

Edited September 23, 2020 by Mario666