Investment changes during Covid? Good? Bad? What next?

[NPCampbell]

Originally Posted by Jetx

To the OP, I’d suggest NOT seeking or taking investment tips from this or any internet forum. Start by reading anything by William Bernstein (The Four Pillars of Investing is an excellent place to start) or any of Larry Swedroe’s earlier books. These won’t give you everything you need to be the best steward of your investment assets, but if you take them to heart (which is to say, if you need the evidence), they’ll help you avoid the big mistakes, and will make you a better investor than 95% of the individual investors, and most of the pros, out there.

Good luck!

I'm not interested in tips. "I think we agree, the past is over" ~GWB. My Covid related investment decisions have already been made. I was curious as to what other people's investment decisions were during Covid. My goal of retiring early and sailing full time is directly related to my investments. I assume many others on this forum are in the same boat situation.

With regards to speculating ... I normally ignore miserable bond returns in favor of broad or growth stock funds. I'm sure this will change if interest rates raise at any point in the future. At least 80% of my investments are in mutual funds (or ETFs if after tax). When I do buy an individual stock, I typically hold it several years. If all of this means I am a speculator, then so be it.

For the past 4 years, my IRA has performed ~20% per year, my 401k at ~19% and my brokerage account ~30% per year. In my brokerage account, JPM was my worst performing stock for the period even counting dividends. My gains are a result of a few good decisions and having a good pro-business environment which is reflected in the S&P 500 having a CAGR of ~17% for the same period.

I typically avoid financial advisors for anything except tax and elder law advice. I'm sure there are great advisors out there I just don't know whether their benefits will exceed the cost of their commissions. I'm sure you have an opinion on this so feel free to set me straight.

[Enrique100]

Last March I put it all in a 50/50 mix of TQQQ and SPXL. Couldn't be happier. As Warren Buffett said, never bet against America. None of the new policies out of Washington are anti-business, it's all an investment in our future. Either you buy into it or you don't. I did.

[NPCampbell]

Originally Posted by MYTraveler

New to the job market being fresh out of grad school, my daughter started investing a substantial portion of her income, mostly in S&P500, but also in individual stocks that appeal to her. She liquidated her S&P before the covid crash, when it was over 27,000, and bought back in at about 24000. She also purchased Peleton, and has resisted the urge to sell, even though it has more than tripled in value.

You taught your daughter the value of saving early. Hat tip to you . My daughter invested about 15-20% of her income in a S&P 500 fund while saving to make enough money to enter grad school. She had to really scrimp to get by. I couldn't be more proud.

[LargeMarge]

Here is our investing strategy based on tangible durable goods in our possession:

* Instead of 'S.A.R.S.' or 'epidemic' or any of the cutesy pundentry such as 'scamdemic', I prefer 'this phase of this Economic Lock-Down'.

Irregardless of the [alleged] objectives, 'this phase of this Economic Lock-Down' clearly describes 2020-21 and beyond.

Accordingly, we invest in skills and experience, we invest in family and community.

[Adrian NAMT]

Today long term investors need to have between 2% & 5% in Bitcoin (BTC) &/or Ethereum (ETH). Gold is being replaced as the best choice for long term wealth security by BTC. ETH is leading the global transition to digital currencies and decentralized digital finance. "Hodl" BTC & ETH for the long term & have confidence in being an early crypto investor.

[ramonex3]

Originally Posted by captmikem

Silver, it has artificially been held down for too long. But have it physically, not held by some company. Jan thru march of 2021 more silver was traded than 2018 2019 combined.

Crypto, Bitcoin doubled end if Jan this year to end of Feb also watch THETA, HOT and ETHERIUM. Again, keep it on a personal wallet rather than let a company hold it for you.


M

Hey there, I know this is a boating site not an investment one but I don’t know if it was by chance or fate as I’m reading this thread I just finished a three day charter with this group of guys who work with investments. They chartered our Catana Bali 4.0 catamaran to do a three day investment brainstorm. Pretty cool bunch by the way. We sailed during the day and tied down in the marina for the night. All this time they were working sharing back and forth investment deals and opportunities.
I could not help listening to some of the things they were talking about
I never made an investment in my life, I'm just a working skipper who would like to buy my own boat someday. I have managed to save some money to eventually put a down payment on it. I have all my money on a savings account but I might as well have it under my mattress considering the low interest rate they pay.
So while doing an open reach at six knots all sails out on fairly flat seas, I couldn't help listening to this guys talk about the way they made money in such an easy and effortless way (at least physically) I really felt like a total idiot (money wise)
At one point chilling by their Gin tonics they started talking about bitcoins joking about how one of their sisters or the other guy's father tripled their money in a few months just by investing a few thousands. That's when I really got depressed. So by the end of the charter I was brainwashed by the damn financial opportunities, I approached one of them, got his card and told him I was going to get in touch with him to seek some advice on the subject.
So here I am the next day checking out Cruisers Furum and what do I bump in to again?... investments. I read your thread and you mentioned Bitcoins and Criptos, can you enlighten me if is not too much to ask about them and if you think they are really worth taking a risk, thanks

[Clivevon]

Hi Ramonex3.
I recommend you to please read my earlier posts on this thread. Not exciting but still bedrock true.
Please remember that people who make money often brag about it but people who lose usually keep quiet.
Bitcoin etc etc are highly risky . By all means get involved but ONLY if you are prepared to lose your money. Its a bet, not an investment. You might stick say 3% of your money into it.
Hope that helps.

[ramonex3]

Originally Posted by Clivevon

Hi Ramonex3.
I recommend you to please read my earlier posts on this thread. Not exciting but still bedrock true.
Please remember that people who make money often brag about it but people who lose usually keep quiet.
Bitcoin etc etc are highly risky . By all means get involved but ONLY if you are prepared to lose your money. Its a bet, not an investment. You might stick say 3% of your money into it.
Hope that helps.

Thanks Clivevon, You are probably right..a lot of bravado involved. I guess I'm
a chicken when it comes down to it.

[longjonsilver]

Originally Posted by NPCampbell

I'm curious what investment decisions people made during Covid? There was uncertainty at whether my job would still exist but once that was known I made a number of investment changes during Covid ... some good, some bad.

Sounds like you have a good handle on managing risk and potential reward. Why are you asking for advice here? Personally, i don't talk about my investing online with more than just a few people in an invitation only chat room, and then only vague information about specifics.

jon

[Clivevon]

A fundamental part of making investments which are good for you is understanding your own attitude to risk. That is a combination of many factors, not just how brave you feel.
Your appetite for risk all depends on how you will react if you lose all your money. Will you shrug your shoulders or will it hurt you deep down inside? And all shades of grey in between.
Your capacity for risk is quite different & depends on your personal circumstances. Who gets hurt if you lose? Just you or also your family? What are the consequences? No holiday that year, or no house? Are you young enough to shrug it off - or are you basically stuffed for life?
Your capacity for risk in respect of any particular investment includes what percentage of your portfolio is it? Is it 1% or 10% ? Not more than that. Remember i am talking about investments, not jobs or businesses where you are working at it.
Hopefully that is useful.
By the way, savings to buy something later is not investment. Its deferred spending. Investments are 5 years plus plus plus.

[Lonestaralaskan]

My 401k is in straight index funds using a Boglehead approach. Our company uses Fidelity, so I'm in the Fidelity indexes that are available through the plan.

My IRA is in a mix of ETFs and some stocks I like.

A favorite little stock that has made me a lot of money this past year is $NYMT - a New York real estate REIT that lost its shirt early in the pandemic, and has slowly climbed back up. It pays dividends quarterly.

In my trading account I have a mix of 15% crypto, 33% domestic stocks (a focus on dividends, tech, real estate, and airlines) a small portion in options (I sell them, not buy them), and cash for when good opportunities pop up.

I also invest in P2P lending (nets about 6.5%), and some real estate crowdfunding that I'm locked into for a few years (its paying around 6%).