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The point is that even in the worst-case-scenario, if you bought stock the hour before the great depression, you'd still be way up when you retire in 30 years l
by alexandercrohde 7y ago
The point is that even in the worst-case-scenario, if you bought stock the hour before the great depression, you'd still be way up when you retire in 30 years later.
- lifty 7y agoYou're probably right, but keep in mind that for the past 100 years we have seen a systematic trend in lower interest rates that brought massive debt expansion and financialization of the economy. We are at the 0% interest rate at the moment so monetary expansion will be more difficult, unless the FED does direct equity purchases like the ECB did. So it's worth considering other outcomes as well, like stagflation, MMT or massive devaluation of our currencies. Some of these outcomes are very bullish for equities, but it's hard to say where things are headed at the moment.
- graeme 7y agoThe dow went from 400 to 50 in the depression. If you bought at the bottom you’d have 800% more than if you’d bought at the top! The fact that stocks go up long run isn’t an argument for pouring money into a plunging market. This might be the bottom, it might not.
- tybit 7y agoAs you said It’s great to buy at the bottom, but who knows if that’s it., so I’m going to continue investing whatever I can each fortnight. I’d rather risk paying more now before a big crash and continuing to invest through the big crash than risk missing this opportunity and the market going back to a bull one in a few weeks.
- graeme 7y agoThat’s fine. The parent comment was recommending people increase their buying right now however. My point was this isn’t necessarily a special opportunity just because it’s off a peak.
- empath75 7y agobut i'm not retiring in 30 years?