The stock market is now overpriced at a level not seen since the dotcom bubble, driven by the AI. What's certain is that eventually there will be a major correction, but no one knows when. How are you investing?
How will you be investing in this highly overpriced market?
- Thread starter stinkynuts
- Start date
I do not know exactly how my portfolio will change but I think I will be holding onto stocks of companies with a heavy amount of assets that are not real estate; pipelines, maybe utilities, maybe power stations, mines, maybe telecom, etc. To rebuild those assets today would be far more expensive due to inflation and interest rates are falling so the debt from those assets is more manageable.
Many are calling the top around Q1 or Q2 of 2026, and when Joe Retail FOMO's in on AI, example PLTR , I'd like to buy medium/long term PUTS and play it on the way down. I know highly speculative, but just a few thousand, nothing major.
There is some big volatility coming in November; student loans will start to be forcefully collected, and Supreme Court is ruling on the Trump tariffs.
I am thinking about buying call options on Lulumelon. The stock has been hammered by tariffs, if the court rules that tariffs are illegal, then the stock should pop. There might be better stocks to buy call options on, I will have to take a serious look at which stocks got fucked the most during liberation day and have not recovered.
Crypto is a good litmus test for the market, BTC is at ATH again so the market is in risk on mode again. If you put money into AI stocks it should pay off nicely for the next little while.
I am thinking about buying call options on Lulumelon. The stock has been hammered by tariffs, if the court rules that tariffs are illegal, then the stock should pop. There might be better stocks to buy call options on, I will have to take a serious look at which stocks got fucked the most during liberation day and have not recovered.
Crypto is a good litmus test for the market, BTC is at ATH again so the market is in risk on mode again. If you put money into AI stocks it should pay off nicely for the next little while.
Personally, I would not use crypto as a gauge on the market. I gauge the markets based on the info at the time. I do not watch the crypto market, I watch the crypto stocks. There may be a few bucks in these stocks in the next few trading sessions.
BITF, HIVE, DMGI, HUT, GLXY
Tuesday open to 11:30
BITF 5.85 -7.91 36.09% GAIN
HIVE 8.60 -9.79 13.05% GAIN
GLXY 53.27 - 58.08 9.05% GAIN
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I am hoping that the vix drops back down low to where it was before the current 100% trump tarrif announcement so that I can buy cheaper puts to hedge gold. A week ago it was 5.5% for a 1 year put option, now it is 6.5%.
Gold currently is 25% of my portfolio; it is pretty much the max position I will take without a hedge. If I can get 1 year put options for just under 6%, I think I may go to a 50-70% gold position but it will be all covered by put options.
But everyone has a plan until they are punched in the mouth, so who knows.
Gold currently is 25% of my portfolio; it is pretty much the max position I will take without a hedge. If I can get 1 year put options for just under 6%, I think I may go to a 50-70% gold position but it will be all covered by put options.
But everyone has a plan until they are punched in the mouth, so who knows.
I'm doing nothing now. Retired, sitting ~68/32, overweight materials (XGD, SIL, SII, AEM), let the runners run.
About 3 months ago I sold down a bunch of my equity winners and put the fund into bonds and international non USA ETF's to balance up my overall holdings.
In my us tech focused ETF I sold half. Four years ago I bought some shares sub $50, adn now the thing trades for $200.
I am nearing retirement and have a pretty good sized stash.
So I would rather be safer than to keep things set to all shoot for the stars when, an inevitable burn down is overdue in my book.
In my us tech focused ETF I sold half. Four years ago I bought some shares sub $50, adn now the thing trades for $200.
I am nearing retirement and have a pretty good sized stash.
So I would rather be safer than to keep things set to all shoot for the stars when, an inevitable burn down is overdue in my book.
People don't need to worry about not having any holding of investment
in precious metals in their stock portfolio and savings if the stash of cash
they are sitting on are big enough.
That being said you do have to worry about erosion of your wealth
if you are not a millionaire and expect to live another 3 or 4 decades.
If they have some money in the Canadian index, they have been getting fair chunk of gold exposure and of course some other commodity exposure.
As for being a millionaire, I believe you could buy maybe around 30 houses in Toronto with a million when I was a very young kid.
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Just out of curiosity, how "mostly bonds" differs from "I'm pulling out completely and going all cash" given that cash means bonds? Or does "mostly bonds" means keep all your stock investment but invest that minuscule amount that you will earn in these few month into fixed income securities? Also, why you call individual stocks "safe"? It would be hard to find any stock (regardless of P/E or dividend yield) that has lower volatility then the market index.
Money invested in a money market fund or T-bill fund in a mutual fund/stock
portfolio is pretty much equivalent to a position in cash.
Money invested in a mutual fund holding fixed income securities
like the Canadian bond fund offered by banks are nearly as safe
as cash in a market melt down. Such funds are mostly invested in
government bonds. You may still lose money in an
environment of rising interest rate though.
Though not as volatile as stock prices high yield corporate
bonds could be risky investments.
This doesn't look good.
Micron to cease chip sales to China, bitcoin sinks to 4-month low
I had a nice little run up to 55% in the last few months. Now thinking of dumping it.
Micron to cease chip sales to China, bitcoin sinks to 4-month low
I had a nice little run up to 55% in the last few months. Now thinking of dumping it.
