Here are some things I’m thinking for 2021 and beyond Cheese.
Keep plowing money away dollar cost averaging into 401ks up for the match and then consider Roth alternative IUL for the remainder of what you can afford
People need to take their political blinders off and analyze things objectively
Like the BOA warning, I believe the Dems will overreach again and the market is now counting on trillions of dollars in more stimulus money. Creating a short term bubble
I believe the Dems will only be able to get Immigration through for Daca, they are chanting “Biden, Biden” at the borders. No market impact other than paving way for red wave in 2022
Big market question is “how much stimulus can they really jam through”?
I’m thinking not nearly what the market expects. Margins are too thin
Thus, I’m using January as the sugar high stimulus time to reposition some portfolios and be ready to buy on dips
Adding more global and emerging markets. MELI, SE, Flutter, API, FVRR etc etc
Still think US will outperform because of stimulus
How much business killing regulation will the Dems implement and pick sectors to avoid that
Operation warp speed and the unreal getting to this point sets up for a big re opening 2 nd half of the year
Which stocks or sectors will outperform?
How much will rising interest rates affect growth stocks?
Bottom line, some stimulus gets done, ZERO tax hike this year, possibly a token tax on the wealthy high income earners but no corporate!
Gotta watch Fed policy and inflation due to stimulus and reopening
Equities are STILL the only place to be in 2021 as bonds are setup for a total disaster
Depending on the above factors 4200-4500 on the S&P. We want the portions of that market that outperforms!
Think LONG TERM, even when you are making your ST trades. Why am I purchasing this company or that company?
Timing the market? DOES NOT WORK consistently. Pick times that like April when they arise that make great “timing purchases”
Buy great companies and then buy more when they go on sale. THAT is how you get wealthy over time
Exhibit A. Apple