5 ms·
> My concern is that overall, the product and marketing seem to be geared towards speculative, short-term trading. When I first signed up, the app was recommend
by wgerard 9y ago
> My concern is that overall, the product and marketing seem to be geared towards speculative, short-term trading. When I first signed up, the app was recommending that I check out stocks like Apple, Netflix, and Snapchat, not index funds.
There's a broad spectrum of public companies obviously, but it's hard to see $AAPL as speculative in the same sense that people call penny stocks or cryptocurrencies speculative (i.e. much, much more risk involved in the latter two). Investing in large cap equities isn't the stupidest thing you could be doing as a new investor - that award would certainly go to buying derivatives.
And indeed if I have criticism of RH it's that they're trying to appeal to all investor types at the same time, new and experienced alike. It's easy to see how new investors can get confused when RH offers the ability to sign up for cryptocurrency trading and options trading, two things new investors obviously should not be doing (though admittedly there's obviously a questionnaire involved before you can be approved for options trading, not sure about cryptocurrencies).
- jjeaff 9y agoWashington Mutual, Bear Stearns, Lehman Brothers, General Motors, Fannie Mae, Freddie Mac are all good examples of why you should avoid individual stocks, even if they are "blue chip".
- 2trill2spill 9y agoDepends on when you bought them of course. I bought FNMA(Fannie Mae) in 2010 and it turned out pretty nicely. But yes most people are better off buying index funds. That's where most of my money goes.
- bigtunacan 9y agoAmazon, Alibaba, Mercado Libre, and Netflix are good examples of reasons not to avoid individual stocks. More than 90% of my investments go into index funds and 10% into individual stocks, but if hindsight was 20/20 it would be 100% into my individual stocks and I’d be retired on my own private island today.
- wmeredith 9y agoHindsight IS 20/20. I think you meant if foresight was 20/20.
- bigtunacan 9y agoLOL. Indeed I did.
- dragonwriter 9y agoAside from the hindsight/foresight inversion, you probably mean if your foresight was 20/20, but the rest of the market had no better foresight than they actually do. In which case, of course, you should invest entirely in the highest rate-of-return investmentd that the rest of the market currently undervalues. The problem is people are prone to overrate their own foresight.
- beiller 9y agoI find a good approach is to buy index funds, but when it comes to whatever your subject is, like I.T, you can pick companies you like or think will succeed. Just make sure to look at it in terms of the business and its future.