Dude, you're wrong on this. BONDS are an investment. CASH is not an investment. Listen to seattle prattle. He's got it right. I am actually very surprised that you don't.
Flagpole right on this. Your cash is being decimated by inflation - especially the 9.3% inflation that Joe offered us.
It's 12/31/2021, inflation will rise 6.5% in 2022, these are your choices to hold to the end of 2022;
1) SPY
2) Gold
3) Bitcoin
4) Cash, either reinvest 3 month T-Bills every quarter or VMFFX ( Vanguard Federal Money Market Fund)
Flagpole right on this. Your cash is being decimated by inflation - especially the 9.3% inflation that Joe offered us.
It's 12/31/2021, inflation will rise 6.5% in 2022, these are your choices to hold to the end of 2022;
1) SPY
2) Gold
3) Bitcoin
4) Cash, either reinvest 3 month T-Bills every quarter or VMFFX ( Vanguard Federal Money Market Fund)
5) BND
every freaking day I wish I had kept cash instead of bonds that year. And now I'm actually using money market instead of some bonds. And yes, I'm counting that 'cash' in my performance.
gente's point is that inflation hurt bonds much more than it hurt cash.
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2022 was a good year for Hussman (HSGFX) +17.3%. 2022 was like the 70s condensed into 1 year! XOP (Oil and Gas Exploration and Production) was up 45.3% in 2022. Here's a blast from the past I've saved!
New York magazine was born in 1968 after a run as an insert of the New York Herald Tribune and quickly made a place for itself as the trusted resource for readers across the country. With award-winning writing and photography...
Throwing this out there, how many of you take into consideration your spouse's risk tolerance when allocating for retirement? My mother outlived my father by 20 years and it wasn't because he died young. He was 80 when he passed away.
Throwing this out there, how many of you take into consideration your spouse's risk tolerance when allocating for retirement? My mother outlived my father by 20 years and it wasn't because he died young. He was 80 when he passed away.
Also 42 years ago today.
It's a good question. My wife is pretty sharp but she's never shown much interest in managing investments. My goal is to have everything simplified so if I predecease her she won't have to do much. As far as risk tolerance goes we're in a good place and don't need to take any real risk so I could just leave everything in a 60/40 with dividends deposited in her bank account and she'd be set for life.
This post was edited 1 minute after it was posted.
I spent a good time in oil patch country during my coaching years. Neighbor worked at Halliburton and another at Schlumberger, drove in one of those blue trucks featured in article.
I'd just say that if someone keeps 3 years(!) of expenses in cash (or bonds)...well that's a giant decision that really should be incorporated when talking about the performance of that person's investments. Without it you get a false impression of overall returns.
But clearly this is going nowhere.
They might be giant decisions, but they are not the SAME KIND of decisions. Listen to seattle prattle, because he's right (as am I). Cash, that is not just waiting on deck to be invested, is NOT an investment. I track INVESTMENTS, not a "portfolio" or net worth. You are just 100% wrong on this. No need to answer me, but think to yourself...where do you end what you consider what should be in a "portfolio?" Money in my checking account? If so, ALL of it?...I mean some of it is just for recurring expenses. ANYTHING I could sell for cash? The value of my house, my cars, my musical equipment, the spare coins in my coin jar?
I'd just say that if someone keeps 3 years(!) of expenses in cash (or bonds)...well that's a giant decision that really should be incorporated when talking about the performance of that person's investments. Without it you get a false impression of overall returns.
But clearly this is going nowhere.
Yes, completely agree.
To keep it meaningful one could simply note something like this year I had a portfolio performance of XX % with a cash reserve of approx, 3 years expenses in the form of cash and bonds. In that way, some disclosure of an unusually large buffer could be included in order to capture an unusually conservative management of overall assets.
But I see your point, and it is a good one. I just don't know how you get a full picture otherwise. You really do need to look at both.
I think the part about all this that gets glossed over is that the cash/bond holding might really be considered as a very favorable component in portfolio performance in the down years of the markets. And this is an easy thing to discount since we have undergone a period with so many up years.
The cash I have is just a large emergency fund. Emergency funds are not investments and should not be treated as such. If you want to add the emergency fund to your net worth, that is appropriate. NOT appropriate when talking about an investment "portfolio."
Are you going to count the $60 in cash in my wallet? My coin collection? My house? My cars? Anything I own that I could sell for cash?
I'll just track the performance of my mutual funds. You can just know that that's what I do.
Are you counting the gold fillings in your teeth? Most of Flagpole's cars are not worth much. But his double-wide could probably fetch $15,000 if not more. The broken-down car in his front yard not so much.
Your attempt at humor is a failure.
I will tell you approximately what my cars are worth, which is really NOTHING in my grand scheme.
1) My newest car is worth about $20,000 today. I bought it in 2022 when supply of cars was very low due to chip issues, so it wasn't my first choice.
2) My second newest car is worth about $9,000 today.
3) My oldest car is worth about $2,500 today.
The real value is what they provide. Cars 2 and 3 are a Honda and Toyota (engine) respectively, and they will run just about as long as I would want them to. Car #1 has better features than the other two older cars, and it is AWD which the other two are not. Probably doesn't have the longevity of the other two, but who knows, it could. I don't really care though, honestly. I will probably stick with Honda and Toyota (or MAYBE Mazda) only from here on out unless the auto industry greatly changes.
I spent a good time in oil patch country during my coaching years. Neighbor worked at Halliburton and another at Schlumberger, drove in one of those blue trucks featured in article.
Igy
When we were in St John's there were many ships that serviced the off shore oil platforms. Saw items marked Schlumberger and Baker Hughes on the docks. My favorite part of the article is CEO Riboud explaining the rationale for purchasing Fairchild. "He sketches a broad strategy for taking the company into"artificial intelligence"by combining Fairchild's semiconductor capabilities with Schlumberger's expertise in instrumentation and measurement". This was in 1979! This is as good as The Money Game by Adam Smith (George Goodman) written in 1968. In one of the chapters there is a reference to a government-private project to frack oil using hydrogen bombs! It never came about because the oil would be radioactive. I had mentioned a while back that I had worked part time nights in a grocery store 1969-70. On our breaks I would read magazines. New York Magazine was one of them and Adam Smith often had articles on finance. This led me to purchase The Money Game, a book I highly recommend (gave a copy to my son when he was in high school).
Are you counting the gold fillings in your teeth? Most of Flagpole's cars are not worth much. But his double-wide could probably fetch $15,000 if not more. The broken-down car in his front yard not so much.
I'm betting there's a guitar or two and maybe a keyboard as well, and they are nothing to scoff at. Just a hunch....
CORRECT! Guitars, keyboards, amps...and anything else of value in my house. Regarding Sally's gold fillings comment, I've only had three fillings ever, and not one of them contains gold.
Up around 280% on my XRP - bought a good chunk on Election Day averaging 0.51 and now it's at $1.45. Really happy with how crypto has done and I think Trump's complete support of deregulation will usher in an even greater bull market.
$1.89 now. I’m even more bullish since November 5. I think the complete deregulation will be amazing for crypto
Up around 280% on my XRP - bought a good chunk on Election Day averaging 0.51 and now it's at $1.45. Really happy with how crypto has done and I think Trump's complete support of deregulation will usher in an even greater bull market.
$1.89 now. I’m even more bullish since November 5. I think the complete deregulation will be amazing for crypto
Speaking of cryto, have you guys been following the story of the guy whose ex-GF mistakenly threw out 8,000 bitcoin on his hard drive. It is sitting in a landfill but the authorities won't allow him to excavate it. It is worth today about $787 million.
$1.89 now. I’m even more bullish since November 5. I think the complete deregulation will be amazing for crypto
Speaking of cryto, have you guys been following the story of the guy whose ex-GF mistakenly threw out 8,000 bitcoin on his hard drive. It is sitting in a landfill but the authorities won't allow him to excavate it. It is worth today about $787 million.
Yes. It’s insane. I have large regrets about not investing in bitcoin in 2014 and if I had a time machine I’d travel back but that completely pales to the person who threw out his hard drive.
To keep it meaningful one could simply note something like this year I had a portfolio performance of XX % with a cash reserve of approx, 3 years expenses in the form of cash and bonds. In that way, some disclosure of an unusually large buffer could be included in order to capture an unusually conservative management of overall assets.
But I see your point, and it is a good one. I just don't know how you get a full picture otherwise. You really do need to look at both.
I think the part about all this that gets glossed over is that the cash/bond holding might really be considered as a very favorable component in portfolio performance in the down years of the markets. And this is an easy thing to discount since we have undergone a period with so many up years.
The cash I have is just a large emergency fund. Emergency funds are not investments and should not be treated as such. If you want to add the emergency fund to your net worth, that is appropriate. NOT appropriate when talking about an investment "portfolio."
Ran this sceneraio by an Investment Banker in the family circle and their perspective was interesting. In their view, cash reserves should be included as well in the calculation since even cash earns interest and if one chooses to park some of their resources there, that should be captured in their performance calculation.
I guess it all comes down to how you want to define it, but their viewpoint seems to emphesize that everything is in play. I don't know - maybe that's how we should look at these things...
The cash I have is just a large emergency fund. Emergency funds are not investments and should not be treated as such. If you want to add the emergency fund to your net worth, that is appropriate. NOT appropriate when talking about an investment "portfolio."
Ran this sceneraio by an Investment Banker in the family circle and their perspective was interesting. In their view, cash reserves should be included as well in the calculation since even cash earns interest and if one chooses to park some of their resources there, that should be captured in their performance calculation.
I guess it all comes down to how you want to define it, but their viewpoint seems to emphesize that everything is in play. I don't know - maybe that's how we should look at these things...
It is more in line with the point's Agip raises.
I think we all should have 3-6m of cash in a n emergency fund. That doesn’t count as investment.
anything above and beyond that, money meant to be used later, counts. Doesn’t matter if it’s cash, bonds, stock, gold, Lamborghinis or Gibsons.
Ran this sceneraio by an Investment Banker in the family circle and their perspective was interesting. In their view, cash reserves should be included as well in the calculation since even cash earns interest and if one chooses to park some of their resources there, that should be captured in their performance calculation.
I guess it all comes down to how you want to define it, but their viewpoint seems to emphesize that everything is in play. I don't know - maybe that's how we should look at these things...
It is more in line with the point's Agip raises.
I think we all should have 3-6m of cash in a n emergency fund. That doesn’t count as investment.
anything above and beyond that, money meant to be used later, counts. Doesn’t matter if it’s cash, bonds, stock, gold, Lamborghinis or Gibsons.
That would be a good resolution, imo. And I hadn't thought of that, but it would be a good compromise since those carrying unusually large cash reserves are hedging their portfilio strategy.
The cash I have is just a large emergency fund. Emergency funds are not investments and should not be treated as such. If you want to add the emergency fund to your net worth, that is appropriate. NOT appropriate when talking about an investment "portfolio."
Ran this sceneraio by an Investment Banker in the family circle and their perspective was interesting. In their view, cash reserves should be included as well in the calculation since even cash earns interest and if one chooses to park some of their resources there, that should be captured in their performance calculation.
I guess it all comes down to how you want to define it, but their viewpoint seems to emphesize that everything is in play. I don't know - maybe that's how we should look at these things...
It is more in line with the point's Agip raises.
I reject that idea. I track my INVESTMENTS. Cash is not an investment. In my case, my cash is such a small percentage of my net worth that it would hardly make a difference anyway.
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