Investors are making money right now. When Apple hit 130 I sold my entire holding and had a hefty gain. I was easing that money back into the market buying index funds every month. When Apple hit 101 I bought back in. I sold some at 117 and held some. My portfolio is a little better than it was on 8/1, and I have more shares. This isnt the time to run away. It is the time to buy.
That's good timing, but over the long run, in all likelihood, you'll have a hard time outperforming an index fund.
I agree. About 90% of my holdings are in S&P, International, and Small Cap, and Emerging Market index funds. The lack of fees is an often overlooked incentive. I do like to keep a tiny portion in individual stocks though. I made a big purchase in apple when it was 540 a share just before the split, and I also made a play into WWE when it sank to the 11.90 range. Both have been good moves.
All of my market $ are in funds. The investing that I enjoy the most though is flipping houses. I have bought, rehabbed and sold close to 2 dozen. I've made excellent returns on all but 4. I lost a total of $18,000 on them. The trick with houses, just like anything else you buy as an investment is buying at the right price. For me, I generally look to purchase at no more than 70% of what current comps are selling for. I have CPAs and estate attorneys that will give my number to people who need to sell a distressed home. That has been my most lucrative source because these homes aren't advertised on the open market.
I always tell people to mix some non-correlated investments along with their equity and bond portfolios. The market is lucrative, but have some stuff that does not rise and fall with Wall Street nerves and hunches. I've made good money in the market, but I also own timber land, rental property, and some non-correlated real-estate trusts, precious metals, and commodity ETF's. There is money in real estate if you know your business.
