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The problem is a lot of people are momentum investing, hold and forget. kind of a variations on greater fool theory. eventually if I wait long enough someone wi
by sharemywin 9y ago
The problem is a lot of people are momentum investing, hold and forget. kind of a variations on greater fool theory. eventually if I wait long enough someone will come along and buy this for what I paid or maybe more.
- sharemywin 9y agoI worry what if the entire market is made of fools that will buy their next slightly smaller share of the market at ever increasing prices. It used to be that traders set pricing enough that if things got out of hand then traders would come in to sell/short. But what if most people just used buy and hold?
- Spooky23 9y agoPeople are doing that because of the ridulous interest rate situation. If rates go up, that balloon will spring a leak as people move away from equities.
- AznHisoka 9y agoWhy is that a problem? Isn't "buy and hold" a sound strategy that is recommended by financial experts. Rather than "buy and constantly trade"
- creaghpatr 9y agoDepends on your time frame- there's a big difference between optimizing for year over year gains vs. 25+ years.