Investing 102

[ErikLS2]

Great point about the emergency fund of 6 months expenses, I totally spaced that one. My points were all assuming we don't lose the home mortgage interest deduction which some are talking about. I doubt we'll see it go away but if it does it will change things a bit.

[GregWeld]

Originally Posted by ErikLS2

Great point about the emergency fund of 6 months expenses, I totally spaced that one. My points were all assuming we don't lose the home mortgage interest deduction which some are talking about. I doubt we'll see it go away but if it does it will change things a bit.

Having "downside cash" is the most overlooked savings - and probably the absolute most important one. **** happens these days. Plants get bought and closed - economic risks abound with our government(s) - Markets can, and do, implode suddenly! Take the '08 market drubbing.... it came when we were all on a housing high.... suddenly almost overnight there were financial businesses closing - GM went broke - the dang government almost went broke. None of this was the fault of our own conservative investments!!! Many of us were doing everything right! But here you are - caught up in it. So having a few months of reserves so that you aren't forced to sell stuff at a loss.... or if you manage to survive intact... you might be able to take advantage of some real bargains with that cash! Mostly - it allows freedom of choice and peace of mind and costs very little compared to what it can 'save'.

[ErikLS2]

So I went to see The Big Short last night, highly recommend it, whether you really understand the financial crisis or not. And if you don't you will after seeing it. Also Google "bespoke tranche opportunity". The big bank a-holes are at it again it appears!

[Vince@Meanstreets]

Originally Posted by ErikLS2

So I went to see The Big Short last night, highly recommend it, whether you really understand the financial crisis or not. And if you don't you will after seeing it. Also Google "bespoke tranche opportunity". The big bank a-holes are at it again it appears!

come on bubble pop!!!

[GregWeld]

I never short anything.... that's for big money boys with big money to loose and inside info or in depth info.

As soon as you think you are 100% certain of the direction of a company - you get swatted like a fly. Better to invest in companies you feel are growing and doing fine. It's not as exciting... but we're investing not gambling. Gambling is best done in Las Vegas.