I Heavy into bonds in my 401K, what to move to?

[kychas]

I have a lot of bonds, what to move it to.
I still think the dept load is still too much but things are better than two years ago, but I am hearing things could go bad for bonds, what would be a strategy to move into?

[meltblown]

How old? What’s your return, risk you want to take on? Getting in on the top of a bull market will take some consideration

[bubbagump]

Originally Posted by kychas

I have a lot of bonds, what to move it to.
I still think the dept load is still too much but things are better than two years ago, but I am hearing things could go bad for bonds, what would be a strategy to move into?

Melt is right, getting in the middle of a bull market is a tough call. It really depends on what your horizon is, if you are a buy-and-hold for 5+ years I'd be looking at index funds on the S&P, anything less than that I'd be moving to cash and wait for a buying opportunity. We're gonna have one, especially if the midterms go badly.

Bonds are funny. Conventional wisdom is that debt load is bad for bonds and they're probably right about that. The real metric of course is interest rates, most folks (myself included) would have expected them to be higher by now. Frankly I don't see how they can not go up but I ain't a bond guy. My take is you're probably OK hanging on to some short term stuff but I'd be getting out of any long term committments to the bond market too. Personally I've never owned much in the way of bonds and my portfolio is happy for it.

[Mebsuta]

Mark Cuban and Warren Buffay both say cheap S&P 500 index funds.

If the market goes down, and you stay with it and keep investing, you'll be buying more shares when they are low, which will work in your favor when they go back up.

I'm not telling anybody to do that. That's just what I read.

[meltblown]

I could see your side Mebs if he maybe transferred say 25% of his portfolio a year till he got the balance right. I have the opposite of his problem. The problem with bonds now is the rate just keeps up with inflation

[nvcdl]

I'd wait until the stock market goes through a correction before I'd move any money into it.

[Bama Steve]

At the top of a market, or so I am told (yet I don't much listen, because I am old).
Is to get into cash and wait for a crash
Then buy undervalued stocks then sit on your ass
For years and years you wait for a gain
And then once you spot it, do it again.
We 'invest' in the market not for pleasure or pain
But to secure our future but it is all so in vein
for the market is controlled by those we know not
and this Ponzi scheme requires that someone gets shot
Will it be you or will it be, I?
I'd like to retire, before I die
And leave to my brother(s) that which I had saved
And toss my ashes on ground loved instead of a grave.

Bama Steve.

[Bama Steve]

Originally Posted by Bama Steve

At the top of a market, or so I am told (yet I don't much listen, because I am old).
Is to get into cash and wait for a crash
Then buy undervalued stocks then sit on your ass
For years and years you wait for a gain
And then once you spot it, do it again.
We 'invest' in the market not for pleasure or pain
But to secure our future but it is all so in vein
for the market is controlled by those we know not
and this Ponzi scheme requires that someone gets shot
Will it be you or will it be, I?
I'd like to retire, before I die
And leave to my brother(s) that which I had saved
And toss my ashes on ground loved instead of a grave.

Bama Steve.

I sent that ^^^^^^ to my Fidelity financial advisors who sit on their asses and take our money for a paycheck - and axed them who has time to manage these financial decisions while making the money that they live-upon.

I stated that THEY are the only ones with the time to do so - get on it.

This is your full time job!!


Sheepish-lot.

They either work for us or need to be fired.

[bubbagump]

Originally Posted by Bama Steve

I sent that ^^^^^^ to my Fidelity financial advisors who sit on their asses and take our money for a paycheck - and axed them who has time to manage these financial decisions while making the money that they live-upon.

I stated that THEY are the only ones with the time to do so - get on it.

This is your full time job!!


Sheepish-lot.

They either work for us or need to be fired.

Good one Steve. Yeah, that's why I'm a mutual fund kinda guy, who has time indeed? There are some good fund managers but mutual funds are kinda like buying a bike. What you're really buying is the store. Fund ain't performing? Get rid of it, get a management team that is performing because they're out there and nobody has time to waste waiting for old yeller to learn new tricks. Fido has some good ones but most of 'em do. And to that I do not understand why some folks prefer sector funds, all they do is tie the manager's hands by forcing him to buy health care, heavy equipment or financials. Hell if it makes money he can invest in peanut butter futures for all I care. I don't give a rip what path the earnings take to get here as long as they show up.

[Bama Steve]

Originally Posted by bubbagump

Good one Steve. Yeah, that's why I'm a mutual fund kinda guy, who has time indeed? There are some good fund managers but mutual funds are kinda like buying a bike. What you're really buying is the store. Fund ain't performing? Get rid of it, get a management team that is performing because they're out there and nobody has time to waste waiting for old yeller to learn new tricks. Fido has some good ones but most of 'em do. And to that I do not understand why some folks prefer sector funds, all they do is tie the manager's hands by forcing him to buy health care, heavy equipment or financials. Hell if it makes money he can invest in peanut butter futures for all I care. I don't give a rip what path the earnings take to get here as long as they show up.

Yup.

They called me today and set-up a telecon for tomorrow afternoon.

Should be interesting conversation considering the market correction today and the FACT that all my bond investments that they told me to get into were either flat or negative as a result of this correction.

This UP market is BS and inflated by the after-effects of QE several years ago not to mention the pent-up savings as a result of the last administration's policies.