4 ms·

Wrong. This market can stay irrational longer than most of us will be alive. Let that sink in, this is the new normal. You can either sit on the sidelines wait

by xwdv 6y ago

Wrong. This market can stay irrational longer than most of us will be alive. Let that sink in, this is the new normal. You can either sit on the sidelines waiting for things to become "rational" and then invest feeling safe making rational 4% gains a year, or you can get in now and make real money. One thing is clear, when things rationalize and become "normal", many people who were investing now are still going to be sitting on their irrationally made gains while you dust off your cash and prepare to jump in.

lm28469 6y ago
> This market can stay irrational longer than most of us will be alive. What are you basing this on? It doesn't follow any past experiences nor any of what I read. Sounds like what people said right before it tanked hard > You can either sit on the sidelines waiting for things to become "rational" and then invest feeling safe making rational 4% gains a year, or you can get in now and make real money Or, like me, opt out of the FOMO and live life without injecting your money in a cancerous gambling machine no one understand and is being manipulated by things like reddit or Musk tweeting gibberish > many people who were investing now are still going to be sitting on their irrationally made gains while you dust off your cash and prepare to jump in. Like in 1929? Or 2008? I won't need to dust off my cash because there are plenty of other things to invest in other than stocks
- vkou 6y ago
  > Sounds like what people said right before it tanked hard 1. People have predicted 19 of the last 2 recessions. Waiting it out because the market will tank hard in the future is a fool's game. 2. As long as capitalism keeps working, and our governments keep catering to the rich and powerful, the market will recover after it tanks hard. As of 2021, this is a pretty safe bet to make. > Like in 1929? Or 2008? I won't need to dust off my cash because there are plenty of other things to invest in other than stocks I'm glad you brought up 2008. Let's assume the worst case scenario. Anyone who invested a lump sum into the S&P 500 at the peak, on the night right before the crash, in 2008, would have tripled their money in the past 12 years, between gains and dividends. That's a 10% year-over-year rate of return. And that's the worst-case scenario. If you are so convinced that a crash is coming, do the prudent thing, and maintain a 70/30 ratio of stocks to bonds or cash, and re-balance every month. You'll lock in your gains during bull runs, while having the capability to capitalize on any losses when the market slides. What you shouldn't do (unless you plan to be dead in a decade or two) is sit out on the sidelines, day after day, month after month, year after year, watching your money lose its value. What you also shouldn't do is to day trade, invest in weird financial instruments you don't understand, overleverage yourself for the purpose of speculating on illiquid investments (including but not limited to real estate), trade on margin, or throw all your money into meme stocks.
  - deleted 6y ago
    [deleted]
  - ZephyrBlu 6y ago
    > As long as capitalism keeps working, and our governments keep catering to the rich and powerful, the market will recover after it tanks hard. As of 2021, this is a pretty safe bet to make This is what I have believed for a while now. "Stonks only go up" is a meme, but I think there's at least an inkling of truth to it. There's too much wealth tied up in the stock market for it to actually fail.
- xwdv 6y ago
  What are you investing in? There’s nothing else to put your money into right now that gives you good returns except maybe your own business. Real estate is the obvious alternative, but real estate is shitty and worse than stocks IMO. Every year many real estate investors go bankrupt, they get sucked into the idea of buying multiple properties and using mortgages thinking it’s a safe form of leverage until one day your property values collapse, rents fall below the mortgage payments, and now you don’t have enough cash flow to pay mortgages every month and can’t simply sell the properties to pay off the loans because you owe more than what they’re worth. Guess that means you go bankrupt. The stock market is not a “cancerous gambling machine” unless you’re YOLOing on shitty meme stocks and options.

by xwdv 6y ago

lm28469 6y ago

> This market can stay irrational longer than most of us will be alive. What are you basing this on? It doesn't follow any past experiences nor any of what I read. Sounds like what people said right before it tanked hard > You can either sit on the sidelines waiting for things to become "rational" and then invest feeling safe making rational 4% gains a year, or you can get in now and make real money Or, like me, opt out of the FOMO and live life without injecting your money in a cancerous gambling machine no one understand and is being manipulated by things like reddit or Musk tweeting gibberish > many people who were investing now are still going to be sitting on their irrationally made gains while you dust off your cash and prepare to jump in. Like in 1929? Or 2008? I won't need to dust off my cash because there are plenty of other things to invest in other than stocks

vkou 6y ago
> Sounds like what people said right before it tanked hard 1. People have predicted 19 of the last 2 recessions. Waiting it out because the market will tank hard in the future is a fool's game. 2. As long as capitalism keeps working, and our governments keep catering to the rich and powerful, the market will recover after it tanks hard. As of 2021, this is a pretty safe bet to make. > Like in 1929? Or 2008? I won't need to dust off my cash because there are plenty of other things to invest in other than stocks I'm glad you brought up 2008. Let's assume the worst case scenario. Anyone who invested a lump sum into the S&P 500 at the peak, on the night right before the crash, in 2008, would have tripled their money in the past 12 years, between gains and dividends. That's a 10% year-over-year rate of return. And that's the worst-case scenario. If you are so convinced that a crash is coming, do the prudent thing, and maintain a 70/30 ratio of stocks to bonds or cash, and re-balance every month. You'll lock in your gains during bull runs, while having the capability to capitalize on any losses when the market slides. What you shouldn't do (unless you plan to be dead in a decade or two) is sit out on the sidelines, day after day, month after month, year after year, watching your money lose its value. What you also shouldn't do is to day trade, invest in weird financial instruments you don't understand, overleverage yourself for the purpose of speculating on illiquid investments (including but not limited to real estate), trade on margin, or throw all your money into meme stocks.
- deleted 6y ago
  [deleted]
- ZephyrBlu 6y ago
  > As long as capitalism keeps working, and our governments keep catering to the rich and powerful, the market will recover after it tanks hard. As of 2021, this is a pretty safe bet to make This is what I have believed for a while now. "Stonks only go up" is a meme, but I think there's at least an inkling of truth to it. There's too much wealth tied up in the stock market for it to actually fail.
xwdv 6y ago
What are you investing in? There’s nothing else to put your money into right now that gives you good returns except maybe your own business. Real estate is the obvious alternative, but real estate is shitty and worse than stocks IMO. Every year many real estate investors go bankrupt, they get sucked into the idea of buying multiple properties and using mortgages thinking it’s a safe form of leverage until one day your property values collapse, rents fall below the mortgage payments, and now you don’t have enough cash flow to pay mortgages every month and can’t simply sell the properties to pay off the loans because you owe more than what they’re worth. Guess that means you go bankrupt. The stock market is not a “cancerous gambling machine” unless you’re YOLOing on shitty meme stocks and options.