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by cjk2 715 days ago
I think you are crazy putting money into passive index funds.

As for the investors, knowing when to pull out is when they start pushing articles like this. They’re already out and want your capital to go where they are going next.

2 comments

>I think you are crazy putting money into passive index funds.

Why? You can essentially bet on the global/national/segment economy growing.

That's fine until there is political or financial instability across the world which is increasing.
In which case the risk to any individual stock is even greater.
It’s not if it leverages the risk.
Sure, but that doesn't invalidate passive funds.
Your plan for social instability is hodl stocks with increasingly suspect value?

Hm. Mine has been learning how to manage small crops, carpentry and vehicle maintenance.

In the 80s laws were changed to redistribute pensions into Wall Street. I say we do the inverse to Wall Street and expropriate the gains as “fruit of a poisonous tree” with new legislation.

I can grow vegetables and fix my own car. However I’ll be dead before I have to rely on either of those.

My hedge is to simply be less fucked than the person with no assets and huge debts. The world doesn’t go to shit with a boom but a slow whimper.

What are you putting your money into?
Well I’ve pretty much pulled it out of everything and bought a house (no mortgage yay) but I rode NVidia, BAE Systems with a safe position held on an actively managed ETF.

I’ve got a huge pension lined up so I’m going to go on holiday a lot basically. I get a lump sum early payment of that soon so I can invest that somewhere more productive.

Meta, Googl, AMZN, RDDT, AVGO have gotten my portfolio pretty good returns.

Just think what companies will be doing well 10 years from now and don’t buy at crazy valuations.

What if, and this might be just a guess, the hundreds of thousands of people at major investment corporations have thought of this as well and driven the price up so that they are now adequately valued?

Do you know more about the future of these tech companies then the legions of math/physics/economics/CS PhDs paid to investigate the potential of these companies?

If the sales and earnings go up in the long run, and the stocks aren’t super overvalued, then the stocks go up. It doesn’t matter what other people think. All that matters is the performance and valuation.
Yes, they will go up, at the market rate.
No, the sales and earnings go up based on how well the executives employees perform. It has nothing to do with the market.
When you're doing long-term investments, it's not a zero-sum game. It is possible - likely even - that you and those hordes of PhDs all come out ahead.
>It is possible - likely even - that you and those hordes of PhDs all come out ahead.

No, it isn't. This is total nonsense, if the PhDs believe a stock is undervalued they bid it up until it is even valued.

The only secret strategy an individual has to outperform the market over a long time is insider training. Everything else means you are betting against the market being efficient, which is risky, to say the least.

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