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> This is why it's so hard to beat the market and why conventional wisdom keep failing Is any of those ideas truly conventional wisdom, or just popular cultur
by akira2501 3y ago
> This is why it's so hard to beat the market and why conventional wisdom keep failing
Is any of those ideas truly conventional wisdom, or just popular culture among some social media sites?
> Staying invested in index funds regardless of what the macro situation is tends to produce the best outcome.
Are the majority of people _not_ doing this?
- crazygringo 3y ago>> people were expecting high inflation to hurt stocks, or expecting rate hikes to hurt stocks > Is any of those ideas truly conventional wisdom, or just popular culture among some social media sites? These are absolutely conventional wisdom. It's as conventional as you can get, and the opposite of crazy ideas you see on social media.
- Our_Benefactors 3y agoAt least enough people are not doing it that it’s still a viable strategy.
- lumb63 3y agoOr, it is a viable strategy because enough people are doing it. We’ve seen this with ESG funds for instance. More investors want to invest in ESG funds, because bigger firms decided to. That makes ESG funds go up, and those investors then look like geniuses. Similarly, when a huge portion of the population market buys the S&P 500 every single week, how can it not go up?
- deleted 3y ago[deleted]
- astrange 3y agoPassive investing is good because it's not a strategy you can get crowded out from. As long as the world economy grows, of course - if there's nothing to invest in then you shouldn't invest. However there are two better strategies than index funds. They are 1. get married and 2. buy a house.
- NotYourLawyer 3y agoIdk, when treasury rates spiked I think it was rational to pull money out of stocks and buy them.