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I'm Trying To Be Mature, Here.....

Discussion in 'Personal Finance' started by Syynik, Apr 17, 2020.

  1. Syynik

    Syynik Active Member

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    I have about 9 months' worth of cash in my emergency fund. But I'm looking at all of these awesome, once in a lifetime prices of stocks, too.

    So far, I'm safe (as far as I know) in my job, BUT we all know how quickly that can S*** the bed.

    I hate to miss out, but I also loathe the idea of needing cash because of an emergency.

    Let me hear your thoughts on the subject!
     
    OldFart likes this.
  2. StockJock-e

    StockJock-e Brew Master
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    We all know how irrational this market has been over the years.

    This bounce here is going higher and longer than I expected, but if we do get new lows, I would definitely be adding.
     
    OldFart, TomB16 and Syynik like this.
  3. TomB16

    TomB16 Well-Known Member

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    These questions are really tough to answer.

    Some people are OK taking risks. Others would go crazy with the loss of security that comes with knowing they have a few bucks saved.

    I think we have another 18 months before returning to some sort of normalcy. That's when a vaccine is expected. In the mean time, we are likely to have hardships that might even include another wave of the virus. It's not uncommon for these sort of viral infections to come in two or three waves.

    My view is extremely similar to Jock-e. I did not expect such a strong market return. I think equities are over-priced for these conditions.

    So, I would hold tight because I would want the security and I think most equities are over-priced.

    I would also monitor the market closely for the next year, or so, and be ready to jump in with *some* of my emergency fund, if a really sweet deal comes along. Remember, it's not an emergency fund if you spend it on non-emergency items like stocks.....

    From my perspective, a 20% discount is not a sweet deal during these times. In early March, I added to a couple of positions at a 50% discount. I'm hanging onto quite a bit of cash, though. These are strange times and I'm too old and too comfortable to take big risks like I did when I was young. That's why my perspective may not have any relevance to you at all.
     
    #3 TomB16, Apr 27, 2020
    Last edited: Apr 27, 2020
    Syynik and OldFart like this.
  4. OldFart

    OldFart Well-Known Member

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    Only "long" positions I have are USO call spreads & VIX put spreads.

    Not sure WTF is going to happen with USO since they're doing a massive reverse split
     
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  5. Syynik

    Syynik Active Member

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    Yowch. Personally, I am staying waaaaay clear of any fossil fuel stocks for the near future. I thought about puts, but things are so freaking unstable
    politically right now.
     
  6. Syynik

    Syynik Active Member

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    Thanks for your thoughts, Tom. I am in agreement with you about the time frame we are working with. So far my job is "essential" so in the meantime I've increased my 401k contributions another 3%. If, and that's a big "IF" I start feeling more secure in 6-12 months, then I might pull some or all of those emergency funds out and put them to work.
     
    OldFart and TomB16 like this.
  7. OldFart

    OldFart Well-Known Member

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    I got January expiration on the USO call spreads....plenty of time and they didn't cost much.
     
    Syynik likes this.

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