Investments strategy with new administration?

[MossRoad]

Sorry, but that makes no sense to me. His example is of a failed company. All investors who stayed invested in Enron till the bitter end , lost the same amount of money regardless of whether they bought shares as an employee or as a non-employee.

Maybe his message was actually meant to be related to shares in your own company ,that are tied to a retention date, or in lieu of other compensation.
Otherwise, a lot of companies give employees a discount on their stock, plus you’re likely to know if the company is healthy, so that’s an advantage to buying stock in someone else’s company.
You just don’t want to buy too much.
Diversity is all important

Having too much employer stock in your 401(k) is dangerous. Just look at GE. | Brookings

Robert C. Pozen and Ming Liu explain why holding a large portion of your retirement assets in your employer’s stock is dangerous for your financial health.

www.brookings.edu

 

[DarkBlack]

Having too much employer stock in your 401(k) is dangerous. Just look at GE. | Brookings

Robert C. Pozen and Ming Liu explain why holding a large portion of your retirement assets in your employer’s stock is dangerous for your financial health.

www.brookings.edu

Holding a large portion of your money in any single company is a dangerous strategy

 

[riptides]

Holding a large portion of your money in any single company is a dangerous strategy

Not only companies, investment types.

Diversify your holdings.

 

[ponytug]

I just sold my home of 16 years for double what I paid in 2008.
Bought it during a terrible RE market for sellers/great for buyers, so that helped.
Now I am a buyer again. That’s the bad part.

I got to asking myself…..”could I afford to buy my own house that I just sold?”

Nope. Even though my wife and I have greatly increased our incomes, I could not afford to buy my home I just sold.

Seems crazy, but I’m just one example that Americans are falling behind.
And I have done well investing. My retirement is all set, have great retirement diversity. Real estate prices in MY area are insane.

Congratulations!

Housing prices here are crazy as well, but I think that it might be a locally questionable investment at the moment.

For perspective, even if you had put money into the S&P 500 in January 2008, the high point of the year, that investment would have tripled, or up by 4.5X from December '08. Of course, you didn't get a roof over your head or have to pay property taxes, or maintenance.

While housing may have been a good investment a generation ago, but I'm less convinced that is still a good general rule, at least around here, especially given where mortgages are today, and the national demographics. I think that the old adage of "buy low, sell high" applies- if you can time it just right.

All the best,

Peter

 

[Rmart30]

I dont know if i will be doing anything different investment wise besides my normal 401k contributions.
I have 2 houses I need to rehab and get some rental income flowing from them. They are bringing good prices. If I could go back 20 years id have bought 4 houses for around $45-50k each and had renters in all 4 of them. And id have bought more land.
If we ever get another dip like we did with Covid I will invest more into stocks. I dumped a good bit into stocks when the market was about at its lowest. Its done a pretty good return on that.

 

[ponytug]

The strange thing about this area is homes are very affordable. So much so, that you can buy them a lot cheaper than building them. For example, our home is insured for total rebuild cost. Its market value is only 2/3 of rebuild cost.

It isn't always low price markets. Unless you want a brand new, unoccupied house, homes are insured for more than they cost to build because building prices keep accelerating faster than the real estate market- and that was before the massive So. Cal. fires.

All the best,

Peter

 

[RSKY]

The Dow is supposed to be dropping and tech stocks taking the biggest hit. According to my first IRA advisor at Fidelity that means mutual funds are going on SALE !! Good time to buy in. Of course all of us who are heavily invested in tech funds are getting hit but they will come back in a few months.

DRSKY

 

[two_bit_score]

I watch the RE market in my areas of Texas and times are tough all over. I subscribe to a newsletter that collects data on listings from Realtor.com and the MLS. Here is an excerpt.

Sellers on the XXXX, TX Housing Market cut prices on 15.25% of all listings in the month of November according to data from Realtor.com which is visible on Reventure App.

This level of price cuts is higher than the same time last year, when 7.41% of sellers cut the price.

It’s above the long-term average for price cuts in the month going back to 2017, which is 10.83%.

It's not at all unusual for listings to expire after 90 or 180 days then be withdrawn and go back on the market at a lower asking price then be reduced again before going pending and then the final sale price is even lower than the last asking.

A few properties sell quickly. Those usually always are in very good locations, are in very good condition and are priced competively to start with.

I saw an argument presented last week that had some interesting data indicating on average (and you have to be very careful when the word average is used) the residential market in most metro areas of Texas is 22-25% over priced for the market. That meaning that it won't sell at the asking price within 30 days.

From my own observations I can't say that is absolute but it's likely accurate.

 

[kenmbz]

I can't wait for the cali market to hit the 5 year on the interest only balloon loans that most people take to afford a 1.5million home.
It's going to get fun again.

 

[Bearsixty7]

I watch the RE market in my areas of Texas and times are tough all over. I subscribe to a newsletter that collects data on listings from Realtor.com and the MLS. Here is an excerpt.

Sellers on the XXXX, TX Housing Market cut prices on 15.25% of all listings in the month of November according to data from Realtor.com which is visible on Reventure App.

This level of price cuts is higher than the same time last year, when 7.41% of sellers cut the price.

It’s above the long-term average for price cuts in the month going back to 2017, which is 10.83%.

It's not at all unusual for listings to expire after 90 or 180 days then be withdrawn and go back on the market at a lower asking price then be reduced again before going pending and then the final sale price is even lower than the last asking.

A few properties sell quickly. Those usually always are in very good locations, are in very good condition and are priced competively to start with.

I saw an argument presented last week that had some interesting data indicating on average (and you have to be very careful when the word average is used) the residential market in most metro areas of Texas is 22-25% over priced for the market. That meaning that it won't sell at the asking price within 30 days.

From my own observations I can't say that is absolute but it's likely accurate.

They are still building almost everywhere they can around here. We're N.E. of Dallas and no matter where I drive within 30 miles, new home and apartment construction is still going crazy. Yes sales have cooled off some, but stuff is still selling, maybe not above asking in 3 days like it was, but still selling at or above asking in 20-45 days from what I have seen/heard.