With market high, should I sell some stock and pay off car loan?

Ghost of Igloi wrote:

London Bridge wrote:

I'm curious to hear an answer to this. Ghost of Igloi, investment advisor?

My view, stocks and bonds are both overvalued. The difference, I can hold a 10 Year Treasury and get a 2.2% return, which I believe will be better than stocks. I am not advocating that, just making a comparison. In regards to whether the market continues to climb, I don't have an answer for you. I will say that the more overvalued the stock market becomes, just increases the severity of mean reversion. One interesting thing to note, the Fed has been raising interest rates with the belief the economy is improving, yet the 10 Year Treasury has dropped from 2.6% to 2.2%, and yet the market hits new highs. Something is amiss.

Igy

I've been saying stocks have been overvalued for 4 years. Good thing I didn't listen to my self, as I kept my retirement in the market, during this irrational run up. Anyhow, with the precariousness of the World, I'm going to move 75% into bonds on gut feelings

Jiminy wrote:

Bond yields are the lowest they've been in months. Someone's an idiot, but it's not investment advisor.

This comment shows how many of those who post here know little about the subject. Visualize it as a tetertotter, bond yields go down then bond prices go up.

Ghost of Igloi wrote:

Jiminy wrote:

Bond yields are the lowest they've been in months. Someone's an idiot, but it's not investment advisor.

This comment shows how many of those who post here know little about the subject. Visualize it as a tetertotter, bond yields go down then bond prices go up.

Everyone knows how the bond market works. That doesn't change the fact that yields have fallen and you'll make less money holding to maturity (as you referenced).

You just don't know the subject very well. Study a bit more.

Trying to time the market is always a bad idea

Stock market on average over long term always returns 7-10%. You'll beat 80% of the so called experts in a long term low fee index fund (eg vanguard)...Yes We are due for a correction soon but not worth it to try to time it. Keep saving money in tax deferred accounts and buy more stock for retirement

Don't worry about low interest debt. You're better off investing the money and earning the 7-10% on average or investing in your own business.

I bought my house with a cash offer but turned around and financed 30 year fixed since rates are so low. As the other poster said - using debt as a tool is not a bad thing. There is some idiot on letsrun who poses as a CFA (Dave Ramsey or something). He'll tell you to always have zero debt but Guy is a moron. It's clear from the advice he gives that He isn't a CFA and he should probably be reported to the CFA institute in Charlottesville VA. Maybe Rojo and Wejo can help us do this

Ghost of Igloi wrote:

You just don't know the subject very well. Study a bit more.

I'm always studying. Unlike you, I realize that there's always more to learn. That's why you'll forever be looking at my tail lights.

Jiminy wrote:

Ghost of Igloi wrote:

You just don't know the subject very well. Study a bit more.

I'm always studying. Unlike you, I realize that there's always more to learn. That's why you'll forever be looking at my tail lights.

Who's right and who's wrong here. I'm trying to learn something from this thread.

Thanks.

Tojo wrote:

Jiminy wrote:

I'm always studying. Unlike you, I realize that there's always more to learn. That's why you'll forever be looking at my tail lights.

Who's right and who's wrong here. I'm trying to learn something from this thread.

Thanks.

Well Ghost's primary defense of his positions seems to be to attack others with insults. Take that for what it's worth.

Why don't you stop investing in stocks and take that money and apply it to your car loan and pay it off early? No tax implications, no fees, just reallocate what you already have.

Jiminy wrote:

Ghost of Igloi wrote:

This comment shows how many of those who post here know little about the subject. Visualize it as a tetertotter, bond yields go down then bond prices go up.

Everyone knows how the bond market works. That doesn't change the fact that yields have fallen and you'll make less money holding to maturity (as you referenced).

If you buy a 10 Year Treasury that yields 2.25% and interest rates fall, the bond prices rise and you continue to clip the 2.25% coupon. This guy can't formulate an intelligent response because his base of knowledge is narrow.

Ghost of Igloi wrote:

Jiminy wrote:

Everyone knows how the bond market works. That doesn't change the fact that yields have fallen and you'll make less money holding to maturity (as you referenced).

If you buy a 10 Year Treasury that yields 2.25% and interest rates fall, the bond prices rise and you continue to clip the 2.25% coupon. This guy can't formulate an intelligent response because his base of knowledge is narrow.

The rise in bond price only matters if you sell prior to maturity. At that point you no longer "clip" the 2.25%. You can't have it both ways.

It's funny that you make light of the other fellow's knowledge when you apparently don't know this basic tenet.

I have been trading bonds for over two decades. So quit playing your troll games.

Welcome to the club, rookie. You still have much to learn if you think you still earn interest after selling your bonds.

This guy is a former multi-billion dollar hedge manager, global economic advisor, and has made calls that are simply unprecedented. He says that bonds are the trigger...

https://www.youtube.com/watch?v=0FXyiPJ6xwE

Did I run everybody off?

Martin Armstrong wrote:

Did I runeverybody off?

I supppose since this a "running" board..;)

Jiminy wrote:

Ghost of Igloi wrote:

You just don't know the subject very well. Study a bit more.

I'm always studying. Unlike you, I realize that there's always more to learn. That's why you'll forever be looking at my tail lights.

Oh, look another day trader talking his fake book. Have things really declined that much on Wall Street?

C'mon tough guy. Tell us all about it.

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