San Diego Housing Market News and Analysis
Would you invest in an S&P500 ETF now?
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Submitted by kev374 on January 4, 2018 - 10:21am
If you had a large lumpsum of money (currently in a high yield savings acct) that you got, say $300,000, would you take that money and invest in an S&P500 ETF right now, something like VOO? Or would you just keep it in cash? Or do something else with it?
On one hand fearful that we are in the tail end of the bull market and a big crash is imminent. On the other hand I feel there isn't a big enough trigger, sentiment is still sky high and UBS just made a claim that S&P is going to surge 18% this year. WTF? However, I also recall the Buffet remark - be fearful when others are greedy.
GS Bank is now offering 1.4% APY, lousy but it's something. After income taxes (mine are at almost 40% marginal rate) I would make less than 1%. Heck, the S&P went up that much in last 3 days.
I know from a long term standpoint it will come back but I would rather wait if we are at the cusp of something big given the ridiculously long bull market cycle we've had and the staggering gains we've had so far.
The thing that scares me is that the tax cuts have already been priced in and there are a few headwinds - rising interest rates, Democrat win in the mid terms, Trump scandal etc.
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