I look at the market today as a 27 year old. What the hell should I be investing in. I have the ETFs in my retirement. Brokerage wise. Everything is so expensive you’re either chasing AI & tech or looking for value investments and tbh they’re all so damn expensive to buy into. I fear that Gen Z will end up being exit liquidity or bag holding. Thoughts?? Opinions?? Advice??
I’m in the stage of paying debts off and will have them paid off this year before investing so for my particular scenario I won’t be fully investing long term in a brokerage until probably the end of the year.
Valuations at all time high..
byu/Fearless_Car_3745 instocks
Posted by Fearless_Car_3745
30 Comments
Would you complain if your investments stagnated for several years say 5-15% below ATH? Would you complain if your investments were always near 52 lows? In theory then, wouldn’t you always want investments to be at ATH?
Markets are usually at all time highs, thats how they work. They go up over time
I just bought GE, PM, and MS. pretty hard for those to stop going up no matter what kinda. If you wanna play defense I think those are close to as good as it gets.
You won’t get any advice here besides DCA.
Im around the same age as you. I started investing when i was 14. I remember i was seeing these posts when i was 14 and first started investing. Not just that, but almost every single year since ive been investing ive been seeing these posts.
Even during covid when everything crashed and stuff started going up again and wasnt anywhere near ATH, there was posts of “how are stocks going up”
Something you gotta realize in America is that the rich ALWAYS win. And statistically they hold all the stocks
If you’re worried about entry points just wait for the fear and greed index to drop under 20 and buy across 4 weekly tranches into the QQQ. Big tech earnings are very robust and these companies won’t go bankrupt in your lifetime. If you’re worried about big tech, same idea but VOO or VT instead based on your degree of suspicion.
I have plenty of assymetric Swedish small caps. Thats why I love our local market. Much less efficiently priced, especially the micro/small caps. Twitter handle @MisterMCAP if u are interested.
Just bought more QQQ the other day. Couldn’t figure out what stock to buy.
Holding what bag? A lot of Gen Z ( and people in general) on Reddit seem to have gotten into AI early enough
I honestly saw the ” valuations at an all time high ” and ” market is frothy ” in like 2014 2017 2021 and 2023.
Diversify
Invest in anything with stable business/moat
Which has PE ratio of less then 25 and atleast some revenue earnings growth like 10-%
Avoid cyclical or retailers due to low moat
Simple as that
a 27 year old 20 years ago thought the same thing ever hear of inlfation
if all valuations are high then none of them are it’s all relative
April tends to be the best month for the stock market, while September and October are often the weakest. It’s important to wait for a correction or pullback after earnings season ends. Retail investors typically take profits around this time, which creates an opportunity for institutions to start buying.
Think 40 years down the line, not 40 days
There’s always value out there. Just have to dig.
Totally agree. The normal answer to this is to keep the theoretical truths: global, diversified but then sqew a little.
All you have to do to get rid of the overvalued meme stocks is add a “value tilt” to your portfolio.
More on that here: https://freedomisntfree.co.uk/articles/adding-a-value-tilt-to-reduce-us-tech-exposure
The TLDR is:
– A value tilt in a portfolio reduces exposure to high-priced US tech companies.
– Value-tilted portfolios tend to have more financial, energy, and industrial companies.
– A value tilt provides a counterweight to the concentration risk in global index funds.
– Vanguard’s FTSE All-World High Dividend Yield ETF (VHYL) offers an example of a value-tilted fund
Hope that helps man. You’re not crazy and you need to be investing in things that you can justify to yourself in a market downturn so that you don’t panic sell. So, you’re thinking the right way!
There’s always value in the market. One of the worst things you can do is overthink this. Just Forrest Gump the market and over time you’ll do well.
I like buying turn arounds after earnings come out and there’s signs of life. CLF, CRSR, MBLY are recent buys.
Looking to buy ALRM and BOOM this week.
Posts here really haven’t changed in 15 years. We will be reading this same post every month for the next 80 years.
Bull run continues until morale improves.
Go research inflation, federal reserve, money supply, and broad index ETFs. Don’t try to pick winners. Pick winning sectors or large ETFs.
hold hold hold hold hold hold hold hold hold hold hold hold
Don’t complain, there is always a sector or opportunity that is left for dead ready to be bought up.
Edit: but your instincts are correct, everything you want to buy is indeed expensive. If I wasn’t waiting in cash yields, I would look for great companies in software and healthcare and keep buying them.
OP wouldn’t be complaining if they got their shit together and had started investing earlier. Time in market beats timing the market.
Just remember that both the economy and the dollar are going to inflate exponentially over time, so it is in your best interest to get into the market now. Time in > timing.
Its a legit question. Its hard to buy here when it was only 3 weeks ago down 10%.. there was a legit 20% swing in qqq. So what do you do? No idea.
Everything in life is high when the demand is high. Supply and demand 101.
Honestly I’m 26 and have loved the volatility caused by Trumps presidency, I dumbed 13,000 into the market mainly lump sums during the tariffs dip and the Iran dips. I’m already up %11
DCA until market drops to valuations you are comforrable at. Then lump sum what funds you have left in.