Brexit! Watch out!!!

[sv2007]

Unless you are invested in all CASH, Almost all EQUITIES will be the BIG FAT LOSSERS!

Cheerio🎉🎉

True, but people can take out hedge positions.

Because we are retired, we actually guarded against this issue so although most of our wealth is in equities, we aren't suffering too badly. Predictable events like these are very easy to deal with.

I hear that the real crash is coming soon; and unfortunately, we can't really prepare for that.

[tripods68]

True, but people can take out hedge positions.

Because we are retired, we actually guarded against this issue so although most of our wealth is in equities, we aren't suffering too badly. Predictable events like these are very easy to deal with.

I hear that the real crash is coming soon; and unfortunately, we can't really prepare for that.

Brexit came to shock to most people ( I for one am). If you are heavily invested in bonds and maybe dollar currency you might are doing better.

Curious to know what type of "hedging strategy" or just tips can you do in this market environment?

[corn18]

Don't time the market. Pick an asset allocation that you are comfortable with when the market drops 40%. Then stick with your plan when it happens. Keep in mind, the U.S. markets have dropped all the way down to where they were.... LAST MONTH. So you lose a month of gains. Big deal.

[Singuy]

I only insult bad idea. That's why I ask you again do some research! What you are doing has been done, long before the market crash in 2008.

While most of us invest regularly in the stock market (monthly contributions as such), I don't ADVISE people to lose their home so they can invest in the stock market. That's exactly how many people have lose their homes. I may have been blatant, that's because I detest arbitrage, and helped caused market crashed. I've seen it personally having worked for big bank like Wells Fargo and clienteles who have lost everything.

Now you may earn more than most people, that's fine and may take greater risk and great in all. Hope things work out for you! My advise is not to insult you, but insult bad idea. Take that advise for what its worth. There always exceptions. Its free advise that didn't cost you $$

As a long term investor, I still manage risk and approach investment prudently as most investors should.

Ah, thanks for the explanation.

I see doing this as a very bad option for say, retirees with their house paid off, and decides to take such a gamble. We are still young and can take such a risk. I'm pretty sure if I were to invest 500k in, the returns can be gained back eventually, if not after 10 years then 30 years..which should be higher than what the bank is changing us.

[Singuy]

Don't time the market. Pick an asset allocation that you are comfortable with when the market drops 40%. Then stick with your plan when it happens. Keep in mind, the U.S. markets have dropped all the way down to where they were.... LAST MONTH. So you lose a month of gains. Big deal.

No gains to be found in the past 3 years Tom. The market needs a correction or a crash badly before we can see any real gains.

[corn18]

Maybe. I know I'm not smart enough to predict future results, so I'm staying with the asset allocation (60/40) and financial strategy I laid out this year. I am not changing a thing. This is noise to me. I do have a little bit of play money. Maybe I will put it in my taxable account to get my stock % back in line when my bonds go up.

I am extraordinarily grateful that wise people advised me to keep my short term savings in savings. It's a lot of money in cash, but I need it for college, EF, surgery, vacation, cars, etc... All of it will still be there at the end of today.

[parafly]

In my opinion, the economic repercussions of Brexit are being totally overblown by the media. Great Britain will be just fine on its own. It's in everyone's best interest to keep things running smoothly on a macroeconomic level. There is little doubt that nations will work together to keep the terms of existing trade agreements in place.

Needless to say, I bought this dip. I'll also buy the next one if it happens.

[Jluke]

Keep in mind, the U.S. markets have dropped all the way down to where they were.... LAST MONTH. So you lose a month of gains. Big deal.

I didn't see any good deals on the numerous stocks I track.. all about where they were a month ago, but higher than they were in January 2016...

I was hoping to get into MO, but it was actually up today.

[corn18]

I was hoping to get into MO, but it was actually up today.

MO has been on fire since 2010. My friend works for them and gets his bonus and 401k match in MO stock. He has been brave (I thought stupid) and kept the heavy exposure in a single company stock (didn't sell right away like I would). Although I wouldn't do it, it has paid off BIG for him. Stock picking makes me a nervous wreck, so I can't do it. I am happy for those that do it well, though.

[sv2007]

Brexit came to shock to most people ( I for one am). If you are heavily invested in bonds and maybe dollar currency you might are doing better.

Curious to know what type of "hedging strategy" or just tips can you do in this market environment?

It shouldn't be a shock as the pre-vote polls shows a narrow gap. We maybe have extra caution due to retirement, but it should not be a major surprise to people. Look at it this way, if you go to Las Vegas and bets on something that loses 10% of the time, should you be majorly surprised if you lose?

I took out some options positions and a forex position. I also had about $700k sitting in cash which is still in cash ATM. I've closed the forex position while some options positions are still open.

[tripods68]

I took out some options positions and a forex position. I also had about $700k sitting in cash which is still in cash ATM. I've closed the forex position while some options positions are still open.

FOREX might as well spelled in Japanese

[rennigade]

This thread escalated quickly

[sv2007]

FOREX might as well spelled in Japanese

not sure what you mean, but the forex /fx market is the biggest there is and nobody can really move that market much so there's no insider or silly rules to worry about. It is truely the democratic /freedom market for everybody.

[sv2007]

MO has been on fire since 2010. My friend works for them and gets his bonus and 401k match in MO stock. He has been brave (I thought stupid) and kept the heavy exposure in a single company stock (didn't sell right away like I would). Although I wouldn't do it, it has paid off BIG for him. Stock picking makes me a nervous wreck, so I can't do it. I am happy for those that do it well, though.

There are different classes of stocks. Not all stocks move in the same direction. MO happens to be one of those safety stocks where investors go to when things are crazy. Like people buy gold (another safety thing and a hedge used for USD value); and gold mining company stocks generally moves similar to gold, for example.

There are certain stocks to buy if you believe the brexit is temporarily depressing those values. But if you truely believe in that, why not go into options? Way better deal for you on correct predictions.

[sv2007]

I didn't see any good deals on the numerous stocks I track.. all about where they were a month ago, but higher than they were in January 2016...

I was hoping to get into MO, but it was actually up today.

My above reply was for you.