r/wallstreetbets Feb 23 '21

Walking into the stock market today Meme

67k Upvotes

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1k

u/kaibasean Feb 23 '21

everyone in here like "I LOVE SALES"

What the fuck how, I'm already 100% invested, the fuck ya'll doing with money just lying around

317

u/Bluemoose97 Feb 23 '21

When the market is on a bull run it’s a good idea to take some profits and hold it in cash for when it tanks next. Also I hope you at least have 3-6months worth of cash in an emergency fund.

42

u/spacecruise Feb 23 '21

What is this /r/personalfinance?

91

u/Astralahara Feb 23 '21

Seriously.

1: The idea of someone in /r/wallstreetbets having 3 months' cash is absurd.

2: I'm pretty conservative and risk averse and even I think 6 months' cash is stupid. If you talk to the morons in PF they'll say shit like "Well what if you lose your job, AND get injured, AND your parents die, AND they don't have anything to leave you, AND all your friends abandon you, AND you can't get government benefits..."

Motherfucker, WHAT IF A METEOR HITS YOU! You mean you don't have billions of dollars to reconstruct your consciousness in an AI apotheosis?! WOW you negligent fool!

6 months in cash is stone cold stupid. You're losing money to inflation on half a years' salary.

52

u/WeirdSubstance Feb 23 '21

Not disagreeing with your points, but it's 6 months of expenses. Not 6 months of salary. However, for someone living paycheck to paycheck, it's the same thing.

15

u/Astralahara Feb 23 '21

To be fair, some people are saying salary on PF. Every time I go there they jerk each other off about how much of an emergency fund you need. I've seen as high as 1 year or even 2 year's salary.

I want to find someone who thinks you should have a 2 years' salary emergency fund and compare them to me in 10 years to see who is wealthier and see how smart they feel. They're so damn smug about it.

6

u/istockusername Feb 23 '21 edited Feb 23 '21

I mean it depends on how safe your income is and how big your wealth is. Someone having 10% of their net value saved could mean more than someone others whole assets together. Plus it makes a big difference if you’re alone or have a family.

6

u/MjrLeeStoned Feb 23 '21

I'm pretty sure no average person in the US middle class can have two years of salary saved up.

Two years of their salary in debt, that's more relatable.

9

u/LimeGreenDuckReturns Feb 23 '21

I keep cash for 5 months critical expenses, I hold it in instant-access savings making 1% apr.

In 2016 I left one job for another, hated the new job and lost it, split up with my fiancé then tried to kill myself. I had zero issues getting a new job, however I was in no shape to function. The only thing that kept me going was my emergency fund.

I chose to take 4 months off work, I took a couple of holidays, I chilled out and did my own thing, safe in the knowledge I had secure money to cover it. Once I started to run low I walked into a job better, and more well paid than both the previous.

I did all that without having to sell off any long-term investments to cover it.

First thing I did was rebuild that fund, the money lost to inflation is a tiny price to pay for that level of peace-of-mind.

1

u/tkati97 Feb 24 '21

To be fair your #2 point describes more then a few people I met during the housing crises. That wasn't exactly a 6 month blimp for a lot of people. I'll conceede I have a little guilt about not investing sooner, but at same time now kind of feel like close to 100% of paycheck is f it money. Saving isn't the worse thing, just not the best thing.

1

u/zmbjebus Feb 23 '21

Maybe 6 months "Cash" In a boring boomer ETF/bond of some sort. If that is your style at least.

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u/Astralahara Feb 23 '21

I mean... if your emergency fund is an ETF that really defeats the point. If the market crashes and you lose your yob you'll have to sell at a loss to access your "emergency fund" probably. Which would suck. I HAVE an emergency fund. It's like 2 months of expenses and it's in savings. I just don't have as large a fund as the scared little bitches on PF think I should have.