3 ms·

Index funds are a good, safe set and forget option. In boring times, the performance is not much worse and even sometimes better. In times of upheaval though,

• baxtr 6y ago
  Absolutely. At the same time it’s also much riskier.
• alisonkisk 6y ago
  Equities are a good investment because that's where government bailout money goes. Until one day it stops or until enough rich/richish people try to sell equities for consumption it real assets (like building a house) and then the bottom falls out.
• jfengel 6y ago
  At least, they always have been. With many people pouring money into them solely because they're "safe", it's possible that they have managed to turn a safe investment into a risky one,a la mortgages in the 2000s. Currently the S&P 500 has a P/E of 40, a number it historically hits before crashes. Of course the pandemic makes that figure less meaningful long term than it already is, but even before the pandemic it was well above a justified level. I have no better advice for people. I have theories on why it's overpriced, but I am also invested in broad indexes for lack of a better idea. But it may just be that the long-standing advice has become dated.
• jfk13 6y ago
  > high volatility makes active trading MUCH more profitable Or much more loss-making, depending how lucky you are.
• chewz 6y ago
  Index funds are safe bet only with economy growing. This is ending now as we are entering japanization of the economy.