Babbleon wrote: “Being that the stock market is potentially a bubble and it’s important to diversify where should Joe 401k put his money over the next few years?”
I would bet on equities (stocks and stock funds). For several years I have been “maxing-out” on my 403b (like 401Ks I think) at my firm; and now that I have some proceeds from a real-estate sale I am going to start maxing on our underfunded IRAs. In the 403b I have steadily becoming more aggressive even though I am in my mid fifties. Right now (in the 403B) I am 80% Oppenheimer emerging markets (ODMAX) and 20 percent in American Funds Europacific (AEPGX). The returns have been thrilling – if I said how much it would seem like shameless bragging. And you never have to make a “home depot” run with investments like these or mow them either or get them rented out! I fell into them because they were offerred by my employers plan – otherwise there are big front loads plus large initial investment requirements. For someone looking for something a little similar without the loads Janus Overseas which I have owned since June 95. The markets have seen some ups and downs since then and heir have been periods when the fund was down – but overall its been really sweet to me.
I have a prejudice against real estate investments. I got really burned once. In 90 I bought a 4 plex at 601 Silver Spring Avenue, Silver Spring MD 20901. We were really good landlords and there was never a complaint against us. To make a very convoluted story briefer, the county (Montgomery) “stole” the property from us after 10 years just when we were finally getting positive on our cash flow. They forced us to sell at our slightly less than our original purchase price to a favored “non-profit” purchaser as part of an “affordable housing” scheme. It was like something out of Kafka .. worse. People still don’t believe me. 10 years of paint jobs, leasing, floor sanding, and other arduous physical labor was wiped out .. that and much more for it took a part of my cursed soul.
So stocks, my friend, go with stocks! They never call you when things go wrong; if things go south, you just forget about them until things get better.
As for individual stocks, I own very few. GE is one with limited downside(supposedly). I also like it because being concerned with the environment, GE is doing its part on the Global Warming front. Did you know that GE is the world’s leading manufacturer of Wind Turbines?
Beatus ille qui procul negotiis … paterna rura bobus exercet suis, solutus omni fenore….. Horace
