Anybody else feeling good about being light on stocks? 

Now, I just need to figure out how to not let this luck go to my head...

Stewardship wrote: So I guess the question is do you want an all-weather portfolio or more of a rainy-weather portfolio?

Well, when it Looks Like Rain, I want a rainy-weather portfolio.

What does the literature suggest on the current valuation of gold and long-term bonds? I take your point to be that in order to underweight stocks, the money needs to be allocated elsewhere. If one doesn't know how to value the alternatives to stocks, who's to say that they aren't even more overpri...

After reviewing some of the literature on market valuation, it seems to me that the stock market is currently overpriced. I'm aware that an orthodox PP implementation eschews speculation of any kind, but how bad of an idea would it be to tactically underweight an asset class while still remaining wi...

Cortopassi wrote:All I can do for now is continue building the cash portion of the PP through my 401k.

Do you have decent options for holding cash in your 401k? The best I have is a Stable Value Fund w/ a somewhat high ER.

rickb wrote: Stock - low cost mutual fund (not ETF)

What's your reasoning for preferring mutual funds over ETFs?

I ended up just buying some T-Bills which was commission-free.

At what point does it become worthwhile to move your cash position into ETFs like SHV and BIL considering that there is usually a fee for doing so? It would cost me 2x $7 to do so (Traditional and Roth IRAs), and I'm considering just leaving my cash in the (non-T-bill) money market fund. Suppose you...

I just came across this concept:

https://www.betterment.com/resources/in ... cash-drag/

Is it just me, or does this analysis completely ignore the value of having cash available to purchase assets at a discount during an economic downturn?

Okay, went 33/33/33 stocks/bonds/stable value in my 401k, and shifted my whole IRA to gold, so now I'm pretty close to 25/25/25/25. Moving forward, I'll try to pick up some physical gold, and get back into owning treasury bonds directly.

Thanks for the discussion, all!

Thanks again for the replies. So two of you suggested just going stocks and bonds in the 401k. However, consider an economic downturn where both stocks and bonds go down in value. Wouldn't I want some cash in my 401k (even if at a high ER) so that I could rebalance and purchase stocks and bonds at a...

Thanks for the responses so far. I'm considering changing my 401k allocation to: 1/3: SPTN 500 IDX ADV IS (FXAIX) (Stock) (ER: 0.03) 1/3: Stable Value Fund (Cash) (ER: 0.3569) 1/3: Fund that tracks Barclays Capital U.S. Aggregate Index (Bond) (ER: 0.0446) This gets some bond exposure into my 401k, a...

Hi all, I've been attempting to set up a PP for a couple years now, but given the limited choices in my 401k, and lack of non-retirement investments, it's been rough going. Also, I'm concerned that I'm leaving growth on the table while having a sub-optimal PP. Any suggestions would be greatly apprec...