My issue with you thinking about the stock market is the “duration” you are proposing. If you’re going to be in it for a few years, perhaps…But it’s not a tricked out/rigged slot machine in which you can say you’ll get your 9-10% return over the next 1-2 years. A lot of it you don’t know when/if things will turn around. Stick it in the highest paying FDIC insured account you can without withdraw penalties.. I wouldn’t even consider putting it into precious metals/commodities/oil gas, since again, seems like you’re dead set on buying over the next 1-2 years.
Put this way…
I hear often times people what to “wait” for home prices to come down and that they will “save” or “invest” their money while waiting….Make sure you can really “save” and that “invest” doesn’t lead to big losses…For example: You might be quibbling over between a home that is priced $850k versus $900k, even though that $50k is spread out over a 30 year or 15 year loan…But then in the meantime, if you decide to put your $180k+ downpayment into the stock market and happen to time it wrong and lose 20% or more (say $36k)…..you have to wonder if you should wonder if you would have been better if you just spent the extra $50k on your home anyway…..Hope you see my point…..
