What's your current asset allocation?

[A Student]

Originally Posted by Mr. B

Just a personal anecdote from ancient history:

About twenty-five years ago, I was applying to my discount broker at the time, Charles Schwab, to be able to, among other things, sell puts. I got a call from the manager of the local office telling me that selling puts was a dangerous, very risky strategy, since your potential losses are very large relative to potential rewards (this was the received wisdom among most financial types at the time—I really don't know if it's changed much since then.)

I tried to explain to him that, for me, I wouldn't be selling naked puts just to get free money, I'd be doing it to reduce the cost basis of stocks I wanted to own. Unfortunately for him, he was too stupid to understand. To him, selling naked puts was, as he'd undoubtedly learned at some worthless financial seminar, extremely risky, and not for the average investor.

LOL - that is not just ancient history. When I applied to E-trade to sell naked puts I got a call from them asking about my goal. I told them I wanted to generate cash flow and/or lower cost basis for entry points. That was not the right answer apparently, and they insisted that I wanted to speculate. Selling covered calls was the way to generate income via options. Finally, I gave up and admitted I wanted to speculate and my app was approved. No sense trying to teach put-call parity...

[solarcurve]

lol. I've found its better to just tell them what they want to hear and not try to get too creative with it.

[asdfasdf]

Originally Posted by solarcurve

lol. I've found its better to just tell them what they want to hear and not try to get too creative with it.

I made a nominal RRSP contribution years ago, like, 10k IIRC, I knew what I wanted to put it in, but the advisor force me to go through the investment strategy quiz, that I easily could've written, I just gave the answers they wanted to hear.

[DixieFlyer]

20% stocks
20% bonds
20% gold/silver
20% real estate
20% cash

[JohnLocke]

Originally Posted by DixieFlyer

20% stocks
20% bonds
20% gold/silver
20% real estate
20% cash

Hey, I kinda like that allocation. Wish it were possible in my 401(k)

[Dismal Science]

Hey Guys - what percent of your portfolio is invested in Beanie Babies?

[Stan]

Originally Posted by Dismal Science

Hey Guys - what percent of your portfolio is invested in Beanie Babies?

Good idea. BB are a truly under valued investment opportunity, just like penny stocks!

[sixt8 berd]

Originally Posted by Dismal Science

Hey Guys - what percent of your portfolio is invested in Beanie Babies?

In current value or purchase price?

[Dismal Science]

I remember back at the highs when my parents bought the $400 "Princess Di" Beanie Baby.

[undegaussable]

Here's an interesting perspective from earlier this month on whether the stock market is currently overpriced: http://www.advisorperspectives.com/d...-Valuation.php

The P/E10 is (or was earlier this month) around 22.2. Clearly it trends upwards but doing a regression on the P/E10 shows it to be well above the trendline:

Spoiler:

Seems to be a good argument for staying out of the stock market for now and keeping money in bonds and other vehicles...