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Originally Posted by DETRoadster
Why do you say real estate is beyond the scope?
I definitely agree with you on the rest. Timing the market is problematic at best. My situation is that I'm 43 and still hanging onto a risk profile that I had when I was in my 20s. I rode out the last crash, exactly as you suggest, and have now amassed a pretty significant nest egg. I guess I'm approaching this from the perspective of re-balancing to "lock in" some of those wins and ratchet the risk profile down a notch. Certainly I have time to ride out one or two more crashes during my career but I do feel the pressure of father time creeping in as I consider how long it took to rebuild wealth after 2008.
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Haha, you're in no man's land in investments. My opinion is, you should start getting less directly correlated to the stock market at this point and start looking for passive income sources. Possibly real estate rental and businesses in consumer non-discretionary area that throws out positive cash flow and distributions.
Unfortunately, both of these are still overvalued even today. But I've already started at least rotating some of my stocks into dividend paying stocks already just to anticipate the next recession so at least I can collect some passive income and average down my cost basis.
Also, if you're an accredited investor consider private label REITs or natural resource trusts with preferred liquidity positions. This way you can ride out recession with passive income and if it blows up you get first liquidity rights.
I have access to a private REIT related to my work, but I passed on it bc I then would have massive positive correlation to my employer's well being. (50% household income and 20% of assets tied up with my employer).