Investments strategy with new administration?

   / Investments strategy with new administration? #1  

RSKY

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Is anyone thinking of changing their investments with the new administration? I started changing mine after the election and, except for a couple weeks when the market dropped, so far it has paid off. Haven't gone full aggressive but far more so than a year ago. I only invest in mutual funds and not individual stocks and am entirely satisfied with a 20-25% return. At least that keeps me ahead of inflation. I do know of one person who told me he had gone as aggressive as possible with mutual funds and another who put everything in the safest, lowest risk possible. But she is a full lefty and bat snot crazy anyway. Hopefully mutuals will edge up in the 25-30% range with inflation staying low. That would enable me to set up daughters and grands with a sizable bank account. Well, grands don't know anything about what I have set up for them and won't know until I pass or they are married and working.

RSKY
 
   / Investments strategy with new administration? #2  
Military stocks, Energy stocks, all going to be winners. Bank stocks will likely bump in the 2nd year once the economy gets its feet under itself.
 
   / Investments strategy with new administration? #3  
We are not changing strategy. We have our investments in a variety of types, mainly EFT portfolios based on risk type, plus some municipal tax-free bonds and individual stocks. Most are low to moderate risk.
 
   / Investments strategy with new administration? #4  
As a long time investor, I wouldn't change a thing. For over 40 years I've never sold or changed anything, occasionally bought new funds. My guess, because of AI, I'd consider
Fidelity Select Semiconductors Portfolio (FSELX) added to my portfolio.
In fact...I just did.
 
   / Investments strategy with new administration? #5  
Tech...Banks...oil and gas...crypto.

Same as it ever was. LOL.

Bonds when I grow up. LOL.
 
   / Investments strategy with new administration? #6  
They say as you get older to be more conservative, more into bonds than stocks...but as my late father said if it's worked all these years why change?
That has paid off for my soon to be 98 year old Mother. Everything was put in my name many years ago but I've always considered it hers until she passes.
 
   / Investments strategy with new administration? #7  
I met with my advisor yesterday and went to ETF investments. Nobody has a crystal ball but these are less risky than mutual funds. He says it’s a mixed bag with corporate tax cuts juicing stocks, but tariffs likely increasing inflation and creating negative stock outcomes. The ETFs we choose are the 50 companies with enough cash balances to be less exposed to increased volatility.
 
   / Investments strategy with new administration? #8  
As a long time investor, I wouldn't change a thing. For over 40 years I've never sold or changed anything, occasionally bought new funds.
Similar. Heavily weighted in Fidelity's S&P 500 fund for several decades now. After reading Buffet's advice that this will put you in the 85th percentile compared to the results across all retail investors.

Why S&P? That's the list of US corporations that are so wealthy they can dictate what laws and subsidies apply to them, as well as dictate what they will pay their suppliers.

Pensions and SS carry our expenses so investment income isn't a life or death gamble. 25 years past early retirement, investments are now near double compared to the day I retired. We spend about a third of each year's portfolio increase, let the other 2/3 ride, hopefully for the kids to inherit if we don't have horrific end-of-life costs. All four of our parents were able to stay in their homes, two of them with live-in assistance, and doing this could get expensive for us. Life is a gamble.

I should note that the pot we initially invested was from selling and carrying back the loans on rentals we cleaned up and sold. In most cases hands-on management of anything will do better than passive investing. In my MBA I did an analysis on whether continuing to operate the rentals would be more profitable in the future compared to cashing out their now-appreciated value. The cash-out made more sense. Especially because this meant getting free of the responsibility of managing tenants. Active renovation and management of rentals is best left to the young and enthusiastic.

We started with degrees but net worth was one old pickup truck. Zero help from parents after college.

As for the original question, I don't see a reason to change strategy after the election.
"The market will fluctuate" as someone immensely wealthy said long ago. Best to just ride the tide, not bet against the pros who have established today's prices based on their cumulative expectations for the future.
 
   / Investments strategy with new administration? #10  
We are not changing strategy. We have our investments in a variety of types, mainly EFT portfolios based on risk type, plus some municipal tax-free bonds and individual stocks. Most are low to moderate risk.
Likewise with us. We are divested in multiple stock investments, always have been. I don't believe in putting my eggs all in one basket, never have.
 

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