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Had to Google HODL and learned it means 'hold', in the context of crypto currencies losing value. Can't comment on that, but for stocks, definitely yes. Histor
by f_allwein 9y ago
Had to Google HODL and learned it means 'hold', in the context of crypto currencies losing value.
Can't comment on that, but for stocks, definitely yes. Historically, the market has always recovered from slumps. I know this does not mean it always will, but lots of people dropped out of the stock market after the crashes in 2001 or 2008 - for them, it would have been wiser to hodl.
- topmonk 9y agoFYI, the origin of HODL: https://bitcointalk.org/index.php?topic=375643.0 https://bitcointalk.org/index.php?topic=375643.0
- mhroth 9y agoHODL is "hold", but it's also "Hold On for Dear Life".
- saagarjha 9y agoAs far as I know, “Hold On for Dear Life” is a backronym conceived to provide explanation for “HODL”.
- pbhjpbhj 9y agoThe market as a whole recovers, but what proportion of [indexed] stock? What's the expected recovery time? (Say average for a randomly selected 10 indexed stocks). FWIW this is an academic enquiry, I'm too poor to gamble.
- f_allwein 9y agoThe stock market as repressed by big indexes like Dow Jones etc. Look at the historic data, then you can calculate for yourself... eg http://www.macrotrends.net/1319/dow-jones-100-year-historical-chart http://www.macrotrends.net/1319/dow-jones-100-year-historica...
- mcintyre1994 9y agoThe idea of an index fund is you're invested in the market as a whole, not a selection of a small number of stocks. So a good index fund will crash when the market as a whole crashes, and recover in line with the market. The entire point is you avoid tying your performance to any selection of say 10 stocks, and typically an index fund will outperform most professional stock pickers.
- RhysU 9y agoI like to think that it's being long on Capitalism.
- lr4444lr 9y agoThat's exactly what it is, if not going long on human society itself. So far I've found, without fail, that everyone with a strong distrust of the stock market as something "rigged" or a belief that it's somehow an "expendable" part of investing that doesn't affect them has an objectively very poor to non-existent understanding of even basic facts of economic and business activity. Much poorer than I do, at any rate, and I don't really know that much.
- walshemj 9y agoIn the USA probably Folk memories of the 29's crash are still having an effect
- makomk 9y agoThat makes me wonder; how on earth would you take a short position on Capitalism anyway?
- qubex 9y agoHODL — Hold On for Dear Life (pretty demented, largely speaking)
- isolli 9y agoRegarding the very long run, people forget survivor bias. For instance, in the early 20th century, you would have had the choice to invest in three equally promising emerging markets: Argentina, Russia, and the USA. One of those went on to grow for over a century, the other two not so much.
- imron 9y ago> Historically, the market has always recovered from slumps. Historically, this isn't even a slump (yet). The dow can drop another 3,000 points and still be up 1,000 points from what it was this time last year.