«Some retirees make the mistake of entirely
getting out of the equity markets when approaching retirement, and that is not a prudent strategy,» Johnson said.
Not exact matches
«One
of the reasons to wait is to find
out do we
get uncertainty in the
market about future economic policy and does that create a correction in the
equity market and slow down business engagement?»
Equity markets had a tough time
getting out of their own way this week as headlines coming
out of Washington DC continued to keep investors...
If an investor had
got nervous in 1996 and sold down his
equities, he'd have missed
out on much
of that great bull
market.
When people
get nervous about
equities, they tend to sell
out of emerging
markets and vice versa.
As many homeowners have found
out since the bubble burst
of 2007 and 2008, it's easy to
get «upside down» on a mortgage (otherwise known as «negative
equity») when the
market takes a turn and home values fall.
When
equity markets climb higher, dynamic asset - allocation funds
get busy booking profit and moving
out of equities.
While, Wade is correct that investors who
got out of the
market using Shiller's P / E ratio would have missed the run in the
markets from 2009 to present, those same individuals most likely sold at the bottom
of the
market in 2008 and only recently began to return as shown by net
equity inflows below.
The bottom line is that
out of the many methods
of investing, the only method that
gets worse performance than a VA is a very - low - yielding bank CD (and that assumes you're going to average over 8 % in the
equity markets).
Now, it seems as if the
equity fund is falling
out of favour as a way for investors to
get their exposure to the stock
market.
Jim continued, «Our lines
of credit are flexible enough to allow real estate investors the ability to quickly
get in and
get out of their assets and our term loans for rental portfolios allow investors to build
equity via rent and
market appreciation.
The type
of higher end rentals I purchase in my
market don't produce the amount
of equity needed to not have any
out of pocket after
getting a 75 % loan
of the rehabbed value on top
of the cash / HELOC rental purchase.