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That would be true if the market didn't consistently outperform inflation over the long run. Dollar cost average...buy and hold. Markets are subject to irration
by chrisco255 6y ago
That would be true if the market didn't consistently outperform inflation over the long run. Dollar cost average...buy and hold. Markets are subject to irrational swings in either optimistic or pessimistic directions. Rich people go bankrupt too. For every short there's got to be someone with equal volume going long...and vice versa.
- maest 6y ago> That would be true if the market didn't consistently outperform inflation over the long run. It should be pointed out that this is true mostly of the _US_ _stock_ market. Empirically, this isn't true of non-stock markets and isn't true of many non-US markets. Buy-and-hold is a popular advice in the US because of the rather unique bull run over the past few decades in this market.
- chrisco255 6y agoPast few decades? It's been true for over a century. Even if you rode out the Great Depression and held your Dow index. Now, I'm not claiming the current prices aren't a bubble, but bubbles (booms and busts) are normal part of any market.
- llampx 6y agoI saw an inflation-adjusted chart of the S&P 500 that showed we are basically getting back to even after the 2009 crash.
- chrisco255 6y agoIt's at all-time highs right now, way over what the stock market was in 2007, 2008. The S&P had already bounced back to pre-2009 levels by 2014. At 3350 right now, it's more than double what it was in 2007 (1500). Inflation has not doubled since 2008. Inflation is near all time lows and interest rates are near all time lows and have been for at least a decade.