Sitting on too much cash and suffering FOMO? The video below may make you feel better for sure. It includes market big data you’ll likely find interesting; I did.
Several months ago I attended a local financial seminar presented by Tom Marshall; Taxes in Retirement 567 Seminar. Tom Marshall is a smart guy. He offers practical financial advice. And, he didn’t try to sell me anything at the seminar. I’m now on his mailing list and today I received an email from his firm, Virginia Estate and Financial Planning Advisors, Inc. The email let me know Tom published the “Market Update” video below.
Time to be Cautious?
Tom gathered a variety of what I’m calling market big data information. It includes charts, equity market trends, and forecasts. He discusses current market conditions most of us don’t usually review. Or, know of for that matter.
Tom also recommends caution with respect to investing today. Are we at the top of the market for now as several indicators suggest? Time to sell high and wait to buy low as Warren Buffet likes to say? Is it a good time to invest or sell? Who knows but the video below is well worth your time either way.
Being a data guy myself, I find the stock market correlations compared to our current equity market conditions compelling. In addition to that, my Personal Capital software (highly recommended by the way) keeps telling me I’m overweight cash. After watching Tom’s video, the market big data he presents makes me feel good about that at the moment.
FOMO: the Fear Of Mission Out, anxiety that an exciting or interesting event may be happening elsewhere.
Market Update Video
Let me know if you’re in the same camp and believe the market big data is something to consider for your retirement portfolio.
The data presented in the video above clearly suggests large fund managers travel in a herd. And, the herd is on the move. Also, the data demonstrates the value of “dollar cost averaging” for those getting started. For example, if you are adding to your investments during the downturns you’ll be fine. However, it could be a problem if you are retired and only making withdrawals. Cash reserves are great to have during the downturns whether you are already retired or not.
Side Note – Dollar Cost Averaging: Dollar-cost averaging (DCA) is an investment technique which requires buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the investment’s price. You, as the investor, end up purchasing more shares when prices are low and fewer shares when prices are high. [More on DCA here for those interested.]
The stock market charts and equity market data trends also suggest you can improve your investment return if you continue investing after retirement. That appears to be especially true if you retire prior to your full retirement age. I am convinced it is a good idea to build up a significant cash reserve before I retire. It should provide me with the flexibility to keep buying low and selling high! I’m also convinced setting up multiple streams of recurring revenue is wise.
What are you planning to do?