I have slightly over $100k invested into the stock market and have another $50k in cash balance. Most of my investments are currently - airlines, banks, and a few cloud companies. Exact list - DAL, LUV, UAL, JPM, BOA, VISA, OKTA, CRM, SLACK, ATLASSIAN, CISCO, GOOGLE, MS, NFLX, BABA, TENCENT, INTEL, UBER. About $5000 in each broadly, mostly bought recently. I have $50k on side lines to buy tech stocks after they correct a bit by Nov elections. Spent another $200k in buying a primary residence few weeks back here in SF. Am I sitting cash heavy ? 30% cash, 70% in non-tech heavy stocks. I don’t see good deals in the stock market right now. #personalfinance #investments
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No issue with sitting on cash. Tech stocks have skyrocketed and are past pre March levels. Retail investors have driven up prices. Stay informed. Take small gambles. Tech stock market is based on market sentiments rather than fundamentals at this point. Ie nio and rkt have done well and will still prolly skyrocket. Long term bet airlines that have little international exposure and able to fulfill short term debt obligatiobs like alk will recover in the long run.
Intel but no amd? I own a lot of the same stocks. Similar boat. You’re fine. Just don’t panic sell when it dips.
I am sticking away from tech stocks which have sky rocketed recently and only dipping my toes in the ones which are corrected. I did buy almost $100k worth stocks in Mar and sold them before buying my house. Made a decent profit as market bounced back immediately.
Cash is trash
I would stay where you are if you a long term investor. Be careful of the airlines though. While they are low, it is going to be another year and change before ppl feel travel is safe. Maybe longer. even when it does there will be less business travel than before as companies have discovered the cos savings of virtual , and recreational travel will take time to ramp up again. It won’t be a light switch moment.
Yes I am not expecting airlines to bounce back 100-200% in coming months. I put a small portion of $ in airlines because they seem to be on slow recovery mode. It’s more of speculative stock I would say. I am fine with they recovering at 10-15% /year worst case scenario.
The small amount is OK I guess. You could get lucky. I am expecting some of them will go bankrupt. Look closely at their cash flow and debt costs and think if they can sustain the last quarter situation for the next 1.5- two years. Also remember that debt costs are likely to rise as their credit ratings downgrade. Some airlines will be successful and will recover a great deal down the road. I have little doubt some go bankrupt or will be acquired for next to nothing. Hertz is an object lesson of what can happen to tourism and business travel related companies
Banks too. At some point the fed balance sheet will be so ugly they will have to at least slow down. And there will be mortgage defaults once evictions kick in and landlords can’t pay their mortgages, etc. tough times ahead.
I am not sure how much the govt can step in to bail out the major airlines. I jumped in as I see DAL almost 40% up since it’s Mar lows. I am hoping it won’t drop back 40% to $19/share range.
I like your portfolio but yeah airlines would be kinda long investment. I eould add some covid pharma stocks like novavax. Most of the stocks you mentioned would be for long term like cisco. Another one I like is alteryx which is pretty low right now if you are considering long term
And do remember just because stocks are high they wouldn’t get higher. Infact if its a bulls market high growth stocks will get higher but if it comes to a bear market even these stocks will tank
Good point. I am apprehensive about investing in pharmaceuticals coz I have no clue which one is better and only 1 out of all the available ones will shoot up with the vaccine discovery. Rest will be all gamble. With airlines, LUV, DAL, UAL all 3 are the top US airlines. I skipped AAL as they have been disastrous even before Covid meltdown.
Always nice to have some dry powder lying around for when opportunities arise. Yeah cash isn’t ideal, but how else will you jump on opportunities without having to move positions around
What are we supposed to do with this information?
I wanted to know based on others’ opinion if I am holding too much cash or what do they think about my current investments ? Sorry to bother you if you don’t have anything relevant to comment.