Yeah, I think it is not great advice actually , the cash can sit there a long, long time waiting, and most people will not actually buy in these meltdowns.
@@adrianq1240 Come on guys it's not that difficult. Keep a reasonable amount of cash, don't end up fully invested without cash to deploy. It doesn't mean keep all your cash until a crash.
Theyre suggesting have some money, to buy the dip. Warren Buffet arguably the world's best investor the best example of this now now...if you have no cash and the market dips it's a pure loss. If you have some cash available you're in a position to make it an equal opportunity. Taking off some profits and tucking it away for dip preserving yiur initial investment, is possibly more what they're saying.
Yes understood, i just think it's bad advice for most people who are better of time in the market and not bother timing. Like the covid dip, when you are worried about toilet rolls and rat tests are you going to have the time and temperament to be loading up on ETF's. Majority will not. And after a few weeks it rebounds and again, the majority will not buy until it returns to the low, which it doesn't. So the money stays in cash earning 4-5% instead of in equities earning 8% p.a. Obviously it can work well, but it is easier said than done.
@adrianq1240 I guess it depends on the person. I love a stock on sale, like black Friday sales I smashed all my Christmas shopping in one night online. But I look at my shares daily...
Am I missing something here? It seems you’re saying ‘have diversified investments’ and ‘keep cash and buy the crash.’ I don’t think that’s particularly helpful. How much cash? What percentage? I keep hearing from RASK that you must be in the market or you’ll miss out. So when do you shut down risk and go into cash and equivalents? I know the answer - when we give you $7,000 a year. Jeez.
@robbieegan9203 I wouldn't say that's correct. I dare say firstly the two are v different. One is invested heavily in etfs with side arms. The other in local and overseas stock plus a multitude of differing financial structures products / resources... Rask I dare say includes more than not investors who are still in earning stage. The other being this, possibly containing pretty independently unencumbered older age and stage... properly in retirement people. In both brackets there is a percentage keeping excessive amounts of cash. Refusing to let go. And then some not holding on to enough, not exercising the benefits of, too little? I don't think you can compare the two even a bit, given how different the clients...plus when they speak of time in market? its like with anything. Time compounds your earnings exponentially. So that is correct. They are right tho too that what's right for one age bracket or circumstance is not always correct for the next either. It's about being measured. Listening and hearing both sides. The those still earning and the no longer earning via a wage. Understanding the stages. And clocking the variables for each whilest making decisions based on... With financial help ? and to the best of my ability... for me now, the correct thing is... .... Xyz...
Thanks gents. A lot to think about
Having 'bullets in the chamber' means timing the market, is Rask suggesting that timing the market is better than time in the market? :)
Yeah, I think it is not great advice actually , the cash can sit there a long, long time waiting, and most people will not actually buy in these meltdowns.
@@adrianq1240 Come on guys it's not that difficult. Keep a reasonable amount of cash, don't end up fully invested without cash to deploy. It doesn't mean keep all your cash until a crash.
Theyre suggesting have some money, to buy the dip. Warren Buffet arguably the world's best investor the best example of this now now...if you have no cash and the market dips it's a pure loss. If you have some cash available you're in a position to make it an equal opportunity. Taking off some profits and tucking it away for dip preserving yiur initial investment, is possibly more what they're saying.
Yes understood, i just think it's bad advice for most people who are better of time in the market and not bother timing. Like the covid dip, when you are worried about toilet rolls and rat tests are you going to have the time and temperament to be loading up on ETF's. Majority will not. And after a few weeks it rebounds and again, the majority will not buy until it returns to the low, which it doesn't. So the money stays in cash earning 4-5% instead of in equities earning 8% p.a. Obviously it can work well, but it is easier said than done.
@adrianq1240 I guess it depends on the person. I love a stock on sale, like black Friday sales I smashed all my Christmas shopping in one night online. But I look at my shares daily...
Australia is actually around 1.5% of the globe geographically so not far off
Am I missing something here? It seems you’re saying ‘have diversified investments’ and ‘keep cash and buy the crash.’ I don’t think that’s particularly helpful. How much cash? What percentage? I keep hearing from RASK that you must be in the market or you’ll miss out. So when do you shut down risk and go into cash and equivalents? I know the answer - when we give you $7,000 a year. Jeez.
Good questions. A percentage would be nice or possibly $50k or $100k cash? More cash?
@ that’s the problem with these videos. As ‘general advice’ there should be an optimal percentage band depending upon your age.
Most getting close to retirement are generally advised to have 2 years emergency fund saved up in cash. Rest invested
@robbieegan9203 actually that's a decent point... 👌 👏 👍 percentage best....
@robbieegan9203 I wouldn't say that's correct. I dare say firstly the two
are v different. One is invested heavily in etfs with side arms. The other in local and overseas stock plus a multitude of differing financial structures products / resources...
Rask I dare say includes more than not investors who are still in earning stage. The other being this, possibly containing pretty independently unencumbered older age and stage... properly in retirement people.
In both brackets there is a percentage keeping excessive amounts of cash. Refusing to let go. And then some not holding on to enough,
not exercising the benefits of, too little?
I don't think you can compare the two even a bit, given how different the clients...plus when they speak of time in market? its like with anything. Time compounds your earnings exponentially. So that is correct.
They are right tho too that what's right for one age bracket or circumstance is not always correct for the next either. It's about being measured. Listening and hearing both sides. The those still earning and the no longer earning via a wage. Understanding the stages. And clocking the variables for each whilest making decisions based on...
With financial help ? and to the best of my ability... for me now, the correct thing is...
.... Xyz...