I currently hold about 20% in preferreds as detailed in an earlier post and 80% in short term, 1-3 month CDs. I plan to move preferreds up to 25-30% over the rest of the year, move another 25-30% into munis and 2-year treasuries when they hopefully peak above 5% and drop the remainder into into CDs of 1 month duration, laddered each week as I begin reinvesting in the market. My recession idea is moving out to early 2024 but if that doesn't happen it's unlikely Powell will strap Biden with a recession in the middle of election season. I've had pretty much the same investment ideas since late last year when I decided making 5% doing almost nothing was more appealing than making 8-10% working at it.
I would never try to sell my investing ideas as better than another set of ideas, they're just the best for us. Coming out of the pandemic we were heavily invested in the market because it was obviously oversold. It's the same thing we did with real estate in 2011-2013, and I did with metals in 2001-2003, (both well documented in my earlier posts here). Lots of other ideas would have worked just as well or better but those were areas we understood and were willing to pile into without 2nd guessing our thesis.
For us today, a total SWAN investment strategy for 2023 and 2024 is better than trying to guess where the next issue is going to pop up as we've been busy marketing and now closing one home here in Santa Fe while we're managing a ground up remodel in the mid-Atlantic and supervising a new home design approval on one of the tributaries to the Chesapeake Bay. For someone dealing with a land locked state and will we have enough water problems, to dealing with the quality of our massive amount of water is a new situation.
I'll have to change my tag line to one of WB's most famous quotes. Rule #1, don't lose money. Rule #2, read rule #1.
The stock market is a device for transferring money from the impatient to the patient. - WB
