March 2018: What am I Investing In?

It is officially March 2018 and that means here in beautiful MN, we will have three great days of 50 degree weather followed by a 12 inch snowstorm that will cause havoc and then melt in one day!  What a perfect time to begin the monthly series “What am I investing in?”  Enjoy and happy investing in 2018!  

March 2018: What am I Investing In?

1.   Long Cash in Money Market Account

I believe that being long cash is a smart move right now.  Many of the investments that I am looking at are overvalued and I am planning to be long cash ready for a correction.  

I have not been able to find solid values in dividend stocks I am watching but soon I believe “Cash will be King” as the values will be there.  Only a few weeks ago we saw the Dow drop over 1500 points and that could be a sign of the coming correction.  

I’m currently working on selling my home as well to take advantage of the equity build up and become even longer cash.  With interest rates on the rise, it will be better to hold cash in the savings account though I will have to watch inflation very closely to make sure the outpace is not at a level that is concerning.  

2.   CryptoCurrencies

This has been my “investment gamble” of 2017 and continues into 2018.  Though this represents a very small portion of my overall portfolio, the upside of these high-risk investments is well worth the risk.

I have a friend who was an early investor in Bitcoin and keeps me posted on what he is reading.  Though I regrettably missed the Bitcoin investment opportunity, I did get into a few other CryptoCurrencies in the past few months.  The results have been outstanding and I am now reinvesting with “House Money”.  I will provide a more in-depth update soon.  Whether you believe CryptoCurrencies are the future or the largest commensurate bubble in the history of investments, one things remains true: the technology of blockchain remains on the most revolutionary technologies of the 21st century and its implications extend very far beyond Bitcoin or other CryptoCurrencies.  

Where am I waiting for Investing Values?

1.   Dividend Stocks

I have not been finding values in dividend stocks.  For me, I want to find these stocks at large discounts due to the market overreacting to other sell offs.  The fundamentals still need to be rock solid and the dividend cannot be cut.  

Though I have had my eye on a few stocks in the past few months, I have not pulled the trigger yet as I am waiting for a better price point.  The sale is coming.  

2.   Real Estate

Photo by park dasol on Unsplash

I am taking advantage of the equity increase in my own house as a perfect opportunity to sell.  I have been in my current residence for 10 years and it has been a great house.  However, I feel that the time has come for me to move out and about, largely to:

• Gain more cash which will be ready for deployment into other investments

• Get back to my minimalist roots with a smaller living space, less maintenance, and less stress

• Perfect time to sell my house with a good increase in value.

I did look at condos in downtown St. Paul the past few weekends and though two caught my eye, I thought most were overpriced.  Here are some quick observations:

• The price point on some downtown condos was absurd.  Sure you get a great view but when you factor in HOA fees, the price one ultimately ends up paying is ridiculously high for what one gets.  
• The average HOA fee was roughly $350 while the price per square foot was $120.  This is a bit higher than I would like to see.  
• Though I believe the market is over-priced for condos and homes IN GENERAL, there were two properties that were interesting that I might look into more detail.  More to come shortly.  

Be on the lookout for my next installment of “What am I Investing In?”  Until then, good luck and happy investing!

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Disclaimer: (1) All the information above is not a recommendation for or against any investment vehicle or money management strategy.  It should not be construed as advice and each individual that invests needs to take up any decision with the utmost care and diligence.  Please seek the advice of a competent business professional before making any financial decision.

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