Bubble speculations, inflation this, inflation that, overvalued evaluations, etc.
But, what are we supposed to do? Are we really supposed to not keep pumping into the S&P, therefore, into tech? What are our other options? I’ve been thinking and came to the conclusion that if the S&P crashes (like actually crashes), why do we assume that foreign stocks won’t also dwindle? Arguably the largest economy and market going down will dwindle down to wreck other markets directly or indirectly. It would be chaos.
Is it time we suggest bonds to 23 year olds? (Joking). Obviously if I or anyone else knew how this thing goes, we wouldn’t need to worry. Just seems like a hard feat to ask people under the age of 30, to sell their shares in the S&P and hold bonds/cash when inflation is already wrecking your cash. Crazy times for sure, but wanted to see if anyone thought the same.
Tired of Tiring Takes When We all Face the Same Reality.
byu/Ledzeppelinbass ininvesting
Posted by Ledzeppelinbass
10 Comments
Fear and negativity gets more clicks. Just ignore the noise and continue to invest in indexes.
Invest in the total US stock market and International Market at a split that you feel good with and keep contributing. If it’s all for nothing because everything shits the bed we’ll all have bigger problems than losing our investments.
Only sell if you have an urgent expense to pay for. If you can’t manage that, find a trustworthy pro and park your assets with them.
Buy auto and weekly. Volatility is a feature to the automated investor. After a couple of bear markets you might learn. Or you will become even more emotional as the money gets bigger.
Panic selling the biggest down side to self directed investors. Best of luck.
Nobody assumes that foreign stocks won’t absolutely tank right along with SP500, they def will. Modern portfolio theory of diversification among non correlated asset classes remains grounded in reason, it just hasn’t delivered an ounce of protection or excess return for about 25 years now. Yes it will be chaos, bigtime chaos.
Market timing doesn’t work over time. But what if I told you that at rare specific times of ridiculous speculation and leverage, it can work extremely well and avert massive losses. Do you think Buffett raised 1/3 cash on a whim – do you know how huge that is? Also most of his holdings are decades old boring companies that spin off significant cash flow, like Geico, banks and oil companies. Did you notice that Cisco finally just last month recovered to its 2000 price peak – 25 years later?
There are other things to buy, like real estate, a primary residence, boring short term Treasuries – Cash is an asset class that delivers amazing returns when everyone else loses half their equity.
>But, what are we supposed to do? Are we really supposed to not keep pumping into the S&P, therefore, into tech?
I bought VXUS instead. Over the last 30 years it’s underperformed VOO but I’m expecting that to change, and it’s been the case YTD.
How long are you investing for? In xx years time, when your chosen index is at 20000, will you care whether you bought it at 10000 or 9000?
Pretty much just buy a mix of the S&P500, gold, and bitcoin, and a healthy amount of bonds, and don’t think about it.
Lots of trolls, doomers, shorts, and pumpers. I get your annoyance and frustration, IMO most are not even Investors.
Supposed to do? Buy and hold ; Rinse repeat.
If you wont spend jt for 10-20-30 yrs why do you care about today’s speculation /valuations?!?
If it crashes and stays low for yrs
and you re far from retirement, you should rejoice and enjoy the years-long sale while corp grow their earnings into their valuation.
There are some things that’ll go down much less or even appreciate, stocks like VZ and PFE with higher yields and predictable cash flows can be safe(r). At your age just keep firing at the pin, but if it makes you feel better promise yourself you’ll go all in when it drops 20, 25, 49%. Chances are you’ll be too scared right then and miss it.