So I got some large sum available to me for investment as I sold a property (tax-free gains). With the current scenario of the politics, economy, and uncertainty, i am really worried where to plug this money right now.
Amount is about 20% of my net worth. All in taxable account right now and I have parked it in PULS (ultra short term bond fund with \~4 to 4.5% returns).
Here is what I am thinking, appreciate some help in selecting the better option:
1. Option 1 - DCA into broad index funds (VT, VOO, etc.) with a bigger focus on global diversification, rather than just US. I also know the India market well, so I could buy some stocks directly in India (or an ETF).
2. Option 2 - But some of the big names in the market and invest a good sum into those stocks over next 6 months to DCA the price. I can then do covered calls on these stocks to keep generating income.
3. Option 3 - Take some extra risk and invest in potential high growth stocks (think Archer, Rocket Labs, etc.) - maybe 10-15% of this money goes into these stocks, with hope of them rising in next few years.
Other consideration:
1. Mostly won't need this money for next 5-7 years. no plan to purchase a house as of now.
2. I am comfortable with cash secured puts and covered calls, so am also considering doing some CSP's on SPY and earning good income on this cash and also potentially getting SPY for slightly lower price
What would you do? I know long term stocks would recovered, etc. - but I anticipate a correction and want to sit a bit on sideline.