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> It’s just using the down economy in your favor to sell mediocre stocks (everybody looses when the market sags so much) to buy really low stocks/funds that eit
by esoterica 7y ago
> It’s just using the down economy in your favor to sell mediocre stocks (everybody looses when the market sags so much) to buy really low stocks/funds that either recover before everything else or grows tremendously from a tremendous loss.
If you can reliably identify good vs mediocre stocks, why aren't you a billionaire instead of messing around with pennies in your 401k?
- austincheney 7y agoThat’s not it at all. It’s about identifying risk and gambling your personal money on it. You don’t have to be a genius visionary. Risk is identified for you by the fund managers. In 2009 I moved all my money from growth funds to an emerging market fund. It was hit harder and earlier than the other funds available but also produced huge growth earlier and faster than the market average. This time I waited for the first market spike to sell anything when my losses were only about 15% then moved about 20% of my money to airlines, cruises, and a low density pipe metal company that just spun off. My new purchases have gained about 50% over the last two weeks. They are still losses overall and will hold on them until market recovery.
- xwdv 7y agoEven if you can identify good stocks, the effect isn’t so pronounced that you could quickly become a billionaire. You would have to predict the actual future to do that, and picking good stocks isn’t the same as predicting the future.