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Index funds, certain types of bonds Picking stocks is literally gambling. Stock prices are a random walk. People csn downvote me if they want to, but they can'
by smt88 4y ago
Index funds, certain types of bonds
Picking stocks is literally gambling. Stock prices are a random walk. People csn downvote me if they want to, but they can't change math.
- fedeb95 4y agoI'm not downvoting you for sure, given I share your sentiment. However some stocks may exhibit some persistence (as in Hurst exponent > 0.5) so some gambles may be worth taking, in the right proportions (very small). I am also wary of index funds, they share the same likelihood of blowing up as stocks. I like the reasoning of Nassim Nicholas Taleb that sums up to adopting a convex portfolio (barbell strategy) with a lot of sure money that sits there (inflation hedged) and some small bets with high potential returns. Some single stocks may be featured in my bets.