Given the prospects of another virus surge, are you making any financial moves?
More virus = more stimulus?
I’d say the only real change for me is the decision to buy a new vehicle. I typically buy used but I think that Ford holding their MSRP pricing for the Maverick makes it a decent buy. Normally paying MSRP I would balk at and say no deal but with the prospects of longer supply disruptions, higher commodity inflation in steel, copper, and oil the decision to buy a new vehicle that gets better MPG than my current minivan seems like the best decision. Also, if they do deliver in a timely manner, I can likely sell my minivan for more than I paid for it even though it now has hail damage and 70K more miles than when I bought it.
I haven’t yet made any moves in my retirement/brokerage accounts yet.
I don’t anticipate a huge sell off like last time. If anything, more stimmy checks would flood the investments and drive prices up again.
I put my 401k money on the sidelines a few weeks ago and that’s proven wrong, I’ve missed on 3% gains. I was looking for a dip that never happened, I’ll keep waiting I guess.
I do believe in this market but I expect a correction at some point as people take profits. At that point I’ll move my 401k back into stocks. And you are correct, new stimmy checks would drive the market higher as would a large infrastructure bill.
I’m not a financial advisor and you shouldn’t listen to me, but if you’re getting close to retirement you should be thinking income stocks and safety. Maybe allocate 10% for dips and gains, but IMO I’d rather be getting 6% and not worry than risk waiting to retire for another AMC. Personally I think the next few years will continue with modest gains but I don’t want to take a six figure hit this close to retirement. Just my opinion.
Both of these will also boost the pressure on inflation. Infrastructure will consume huge amounts of concrete, rebar, wood, construction equipment, structural steel, etc. Stimmy checks will drive up demand for retail goods.
When my wife and I were working, only traditional 401k/IRAs were available to us. We were pretty aggressive investors until we got a couple of years away from RMD age (when it was 70 1/2), probably 80/20 stocks/fixed income. We didn’t want to have to be in a position to have to sell stocks when they were down in order to make RMDs, so we carry at least the next year to year and a half’s RMD in cash and have reduced the mix to 40-45% stocks and 55-60% bonds and preferred. We also swore off individual stocks and primarily use ETFs.