As a currency, no I can't. As to the other points, I know a lot more than 5 people personally that are invested for the other uses mentioned. I also know that some legacy institutions that are much more intelligent and savvy than me are also dipping their toe(s), feet and in some case their whole leg.
I understand that.
Listening is a very important aspect of discussion, and I do see this as a discussion, so I'm listening.
I'm taking his word for it, but @ScarletNut did note that in certain countries it has become a commonly used form of currency. I might not know any of those people but it did sound like a lot of people were using it. And in countries like Venezuela where their currencies have tanked, that does make sense.
Pharma/biotech should have a very good 2021. I jumped a bit into T. Rowe Price Health Sciences (PRHSX) to see how it goes. The big boys should do well, but the smaller companies is where you can make a lot of money, if you know the industry well. However, it is home run or strikeout.....seriously. If a clinical trials goes wrong, some of these companies will literally cease to exist! Go big or go home.
Ya as much as I like the home run plays like lithium or cannabis those stories seem pretty clear to me. And I don't need to pick a winner, the entire sector of each is going to do well.
Just my opinion but getting a return like 55%-65% in 2020 likely means you have an investment policy/strategy that assumes a high risk tolerance. That, in turn, sets yourself up for a comparable decline in bear markets, unless you are better at market timing than 99.9% of investment professionals and investors. If you look at mutual fund managers, hedge fund managers, endowment managers, PE, etc., you typically see big swings for those attempting to significantly beat the market as defined by their benchmark indices. You might be skillful or lucky enough to beat your relative index some years but over a 10, 20,or 30 year period it really doesn’t happen very often—at least not substantially.
+1
I’m using 7% in my simulations.
I think the market will perform better than that, but with periods of down/flatness. I have been researching the hell out of the 2000's since the S&P, Nasdaq, and growth funds all were underperforming. Even if this scenario happens again, there were some industries, sectors, and countries that experienced normal returns (which is reassuring).
Final return for 2020 = +19.8% (vs. S&P return of +16.3%)
And you don't move money around right? Your asset allocation decisions are strictly for new investments?
Relatively small story, I'd say it was more of an advocacy move as he could have just bought the Bitcoin once he got the money, without the headlines, but it is another brick in the wall.
Great job! So this is for your retirement accounts, are they 100% equities or is they’re a fixed income allocation in there too?
I'd think the team lawayers would want that as well, and I'm sure the lawyers on both sides wrote all sorts of stuff down on paper on this one.
This is our return for our entire retirement portfolio for 2020. 7 accounts in total.....401ks, 403bs, brokerage, and backdoor Roth IRAs. 3 accounts continue to get new contributions, but 4 do not. I reallocate all funds throughout the year as needed. I make modest moves, but meaningful. Increased our allocation of growth indexes and funds in early 2020. Then increased our allocation of small/mid caps in the late summer. Stuff like that to catch trends. Overall, I probably made 3 "big" moves this year and probably 4-5 smaller adjustments. Otherwise, lots and lots of tracking and research! :)
See the post above and my reply to RU-05. This does not include our cash (which we view differently and for different purposes) or our daughter's 529. These retirement accounts are about 90% equities and 10% bonds.
Even better job factoring in the 10% fixed income component!
I assume the party will continue as long as interest rates remain at zero or super low and the feds continue to do what they do. But yes, afterwards, I am worried about the 2000s all over again. Our significant ongoing contributions will help, but we need to find those industries, sectors, or overseas markets that will still be bright spots. They were there in the 2000s, so I hope I can find them and adjust accordingly.
That % use to be higher, but as our cash reserves increased, we reduced our bonds allocation in the retirement accounts.
Would you agree certain sectors look better then others? Are you, or have you, rotated to those other sectors?
As I mentioned before, check out pharma/biotech/health sciences.....as a fund. I just jumped into PRHSX. Managed funds are a great way to get into an industry even if you don't have the expertise.
Less so but still better ya?
