5 ms·

It’s very common nowadays to see people suggest investing into S&P500 ETFs and keep them forever. More then 20% of US population owns stocks. I think we are ne

It’s very common nowadays to see people suggest investing into S&P500 ETFs and keep them forever. More then 20% of US population owns stocks. I think we are near a change into this paradigm.

snow_mac 4y ago
What alternative would you suggest?
- devops000 4y ago
  Picking stocks only if they are likely to perform better in the future instead of only because they belong to US market. Aka value investing. Or alternatively, have a basic macroeconomic understanding knowing when enter/exit the market. This might not let you pick up the top/bottom but at least is more intelligent than "staying in the market because it was always trending up".
deleted 4y ago
[deleted]
zitterbewegung 4y ago
What is your suggestion to do instead? Owning a non index fund will have a fee of at least 1% Putting it under your mattress makes you lose from inflation. I'm not sure doing 60 / 40 stocks and bonds could be another solution.
- Invictus0 4y ago
  Think about your investments intelligently instead of looking for a guaranteed sinecure.
  - moneywoes 4y ago
    Day trading?
  - astrange 4y ago
    Do not do that. Thinking about investments violates like four of the rules. https://www.bogleheads.org/wiki/Bogleheads®_investment_philosophy https://www.bogleheads.org/wiki/Bogleheads®_investment_philo... The purpose of financial advisors is to stop people from thinking; if you just stop thinking on your own you'll never need one.
    - Invictus0 4y ago
      I could hardly imagine a dumber thing to say but you do you buddy.
      - astrange 4y ago
        Enjoy performing worse after fees than just buying VTSAX then.
malthaus 4y ago
And it is still (by a mile) the best advice you can give someone who (1) doesn't rely on the money in the short term and (2) doesn't want to spend mental capacity on managing his money. The only difference i'd suggest for people who want to spend 1% more mental capacity is to mix their ETF up so they have global and other-assets exposure. People like to feel in control, like to gamble, like to be clever, like to know a secret trick. But they are just lying to themselves. No matter the macroeconomical circumstances, there's no magical risk/return profile that will beat stocks until there's a significant paradigm shift (and no, a minor recession after a period of weird monetary policies isn't it)

It’s very common nowadays to see people suggest investing into S&P500 ETFs and keep them forever. More then 20% of US population owns stocks. I think we are near a change into this paradigm.

snow_mac 4y ago

What alternative would you suggest?

devops000 4y ago
Picking stocks only if they are likely to perform better in the future instead of only because they belong to US market. Aka value investing. Or alternatively, have a basic macroeconomic understanding knowing when enter/exit the market. This might not let you pick up the top/bottom but at least is more intelligent than "staying in the market because it was always trending up".

deleted 4y ago

[deleted]

zitterbewegung 4y ago

What is your suggestion to do instead? Owning a non index fund will have a fee of at least 1% Putting it under your mattress makes you lose from inflation. I'm not sure doing 60 / 40 stocks and bonds could be another solution.

Invictus0 4y ago
Think about your investments intelligently instead of looking for a guaranteed sinecure.
- moneywoes 4y ago
  Day trading?
- astrange 4y ago
  Do not do that. Thinking about investments violates like four of the rules. https://www.bogleheads.org/wiki/Bogleheads®_investment_philosophy https://www.bogleheads.org/wiki/Bogleheads®_investment_philo... The purpose of financial advisors is to stop people from thinking; if you just stop thinking on your own you'll never need one.
  - Invictus0 4y ago
    I could hardly imagine a dumber thing to say but you do you buddy.
    - astrange 4y ago
      Enjoy performing worse after fees than just buying VTSAX then.

malthaus 4y ago

And it is still (by a mile) the best advice you can give someone who (1) doesn't rely on the money in the short term and (2) doesn't want to spend mental capacity on managing his money. The only difference i'd suggest for people who want to spend 1% more mental capacity is to mix their ETF up so they have global and other-assets exposure. People like to feel in control, like to gamble, like to be clever, like to know a secret trick. But they are just lying to themselves. No matter the macroeconomical circumstances, there's no magical risk/return profile that will beat stocks until there's a significant paradigm shift (and no, a minor recession after a period of weird monetary policies isn't it)