Investment Strategy in a 2nd Wave Market Crash?
Hello PP community,
I’m 36, and found the PP community after the pandemic market crash in March. I spoke to different advisors and new harbor and in early May decided to sell my retirement funds (403b – pre-tax invested) that were invested in 100% stocks in a mix of mutual funds/index funds in a diversified portfolio and they are now in a savings fund/cash. I have heard many views about the potential for a future crash, but am not sure what would be the strategy for what to invest in for my longer investment horizon 25-30 years for retirement. My funds are in fidelity accounts, I have no other equity/bond exposure for my personal fund and have been following the principles of investing in my wellbeing, financial knowledge, minimalist living and community.
If there’s a coming crash, are there specific mutual funds, ETFs, indexes that you would recommend at a certain price to then purchase? Other ideas for how to think about and strategize to optimize this tied up currency for future retirement?
Thank you for your help,
I’m in the exact same boat as you. I switched my Fidelity account to cash. I thought about trying to claim hardship and using the cares act to liberate most of it in order to buy real estate… but that’s got downsides. Taxes (due over 3 years). If you figure it out, let me know. 🙂
Thanks for your response. Glad to know I’m not alone. I am realizing that for every prediction is another prediction that is the opposite, and there is now clear “right” path. I’m working with a financial advisor to re-look at my risk, and envision investing in a diversified portfolio through dollar cost averaging over time once there are more indicators or feel of recovery of the economy. If it crashes, then I’ll probably put more of a chunk in, the same way to diversify and try to captialize on the short term recovery but also in a way that I can keep it in the market for a while. Money money money. Wishing you well.