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I don't know. But I am still diligently putting part of my paycheck in the S&P 500 every single month. I don't believe you can accurately time the crash, and by
by reese_john 5y ago
I don't know. But I am still diligently putting part of my paycheck in the S&P 500 every single month. I don't believe you can accurately time the crash, and by cashing out, you are losing some significant returns [0].
In fact, I remember reading last year, a widely discussed article in HN about how we were in a "Late-Stage Major Bubble" [1], since then, then S&P 500 has gone up more than 20%. I'm glad I stayed invested.
Even if we are in a bubble, the maxim "The stock market can remain irrational longer than you can remain solvent." still applies.
Lastly, regardless of the FED balance sheet, I believe the US remains the best place on earth to start and run a business. America breeds a culture of risk-taking and entrepreneurship and most of the innovation in the world still comes from there.
When asked "What are America’s primary strengths?", Lee Kuan Yew, former Singapore's PM, had this to say:
Americans have a can-do approach to life: everything can be broken up, analyzed, and redefined. Whether it can or it cannot, Americans believe it can be solved, given enough money, research, and effort. Over the years, I have watched the Americans revise and restructure their economy, after they were going down in the 1980s, when Japan and Germany looked like they were eclipsing America, taking over all the manufacturing. Americans came roaring back. They have the superior system. It is more competitive.
What has made the U.S. economy preeminent is its entrepreneurial culture… Entrepreneurs and investors alike see risk and failure as natural and necessary for success. When they fail, they pick themselves up and start afresh. The Europeans and the Japanese now have the task of adopting these practices to increase their efficiency and competitiveness. But many American practices go against the grain of the more comfortable and communitarian cultural systems of their own societies—the Japanese with life-long employment for their workers, the Germans with their unions having a say in management under co-determination, and the French with their government supporting the right of unions to pressure businesses from retrenching, by requiring large compensation to be paid to laid-off workers. The U.S. is a frontier society… There is a great urge to start new enterprises and create wealth. The U.S. has been the most dynamic society in innovating, in starting up companies to commercialize new discoveries or inventions, thus creating new wealth. American society is always on the move and changing… For every successful entrepreneur in America, many have tried and failed. Quite a few tried repeatedly until they succeeded. Quite a few who succeeded continued to create and start up new companies as serial entrepreneurs …This is the spirit that generates a dynamic economy.
The American culture … is that we start from scratch and beat you. That is why I have confidence that the American economy will recover. They were going down against Japan and Germany in manufacturing. But they came up with the Internet, Microsoft and Bill Gates, and Dell… What kind of mindset do you need for that? It is part of their history.
Allison, Graham; Blackwill, Robert D.; Wyne, Ali. Lee Kuan Yew (Belfer center studies in international security)
[0] https://ofdollarsanddata.com/even-god-couldnt-beat-dollar-cost-averaging/ https://ofdollarsanddata.com/even-god-couldnt-beat-dollar-co...
[1] https://news.ycombinator.com/item?id=25713696 https://news.ycombinator.com/item?id=25713696