5 ms·

it took 14 years for s&p 500 to break even if you bought it in 2000

abraxas 3y ago
Yeah, few people realize what it means to sit on a paper loss for 14 years. Not many have the mental fortitude to do that. But it's really hard to convince the millennials and younger who experienced nothing other than a roaring bull market throughout their investing lifetimes.
- gottorf 3y ago
  > few people realize what it means to sit on a paper loss for 14 years. Not many have the mental fortitude to do that. Partly why real estate is such a big part of most people's net worths (and covered by the OP): it's not marked to market frequently, so it's much easier to hold for decades at a time. If everyone had a ticker they looked at every day where the value of their house was updated real-time, there would be a lot more panic selling.
- rybosworld 3y ago
  > the millennials and younger who experienced nothing other than a roaring bull market throughout their investing lifetimes Poking at certain generations tends to be counter productive, but this jab is also disconnected from reality. Millennials entered adulthood in the shadow of the mortgage crisis, which by all measures was a depression event until the definition of a depression was reworked. There were only two significant crashes between 1929 and 2008. 1987 (black monday) and the tech bubble (2000). More recently, covid was a ~40% decline in the S&P (bigger than black monday), and another ~30% started at the beginning of 2022. It shouldn't be worn as a badge of honor, but millennials and younger have experienced more volatility in a much shorter amount of time than older generations.
throw0101d 3y ago
> it took 14 years for s&p 500 to break even if you bought it in 2000 Not if you had a modicum of bonds and rebalanced: * https://www.forbes.com/sites/advisor/2010/09/13/its-not-really-a-lost-decade/ https://www.forbes.com/sites/advisor/2010/09/13/its-not-real... Or if you had international stocks. This myopia of many Americans to only look at the S&P 500… words fail me. Sheesh. Try some diversification (peer-reviewed citations in description): * https://www.youtube.com/watch?v=1FXuMs6YRCY https://www.youtube.com/watch?v=1FXuMs6YRCY
- Cthulhu_ 2y ago
  Buying S&P 500 trackers is considered diversification though, since... 500 companies instead of one or two. "Sheesh".
  - throw0101b 2y ago
    > Buying S&P 500 trackers is considered diversification though, since... 500 companies instead of one or two. "Sheesh". Except all your assets are in in one asset class (equities) in one country (US). Ask the folks in Japan who were around in 1989 how that can work out.
twic 3y ago
And how did a portfolio of randomly selected dot-coms of that vintage do in comparison?

Yeah, few people realize what it means to sit on a paper loss for 14 years. Not many have the mental fortitude to do that. But it's really hard to convince the millennials and younger who experienced nothing other than a roaring bull market throughout their investing lifetimes.

gottorf 3y ago
> few people realize what it means to sit on a paper loss for 14 years. Not many have the mental fortitude to do that. Partly why real estate is such a big part of most people's net worths (and covered by the OP): it's not marked to market frequently, so it's much easier to hold for decades at a time. If everyone had a ticker they looked at every day where the value of their house was updated real-time, there would be a lot more panic selling.
rybosworld 3y ago
> the millennials and younger who experienced nothing other than a roaring bull market throughout their investing lifetimes Poking at certain generations tends to be counter productive, but this jab is also disconnected from reality. Millennials entered adulthood in the shadow of the mortgage crisis, which by all measures was a depression event until the definition of a depression was reworked. There were only two significant crashes between 1929 and 2008. 1987 (black monday) and the tech bubble (2000). More recently, covid was a ~40% decline in the S&P (bigger than black monday), and another ~30% started at the beginning of 2022. It shouldn't be worn as a badge of honor, but millennials and younger have experienced more volatility in a much shorter amount of time than older generations.

throw0101d 3y ago

> it took 14 years for s&p 500 to break even if you bought it in 2000 Not if you had a modicum of bonds and rebalanced: * https://www.forbes.com/sites/advisor/2010/09/13/its-not-really-a-lost-decade/ https://www.forbes.com/sites/advisor/2010/09/13/its-not-real... Or if you had international stocks. This myopia of many Americans to only look at the S&P 500… words fail me. Sheesh. Try some diversification (peer-reviewed citations in description): * https://www.youtube.com/watch?v=1FXuMs6YRCY https://www.youtube.com/watch?v=1FXuMs6YRCY

Cthulhu_ 2y ago
Buying S&P 500 trackers is considered diversification though, since... 500 companies instead of one or two. "Sheesh".
- throw0101b 2y ago
  > Buying S&P 500 trackers is considered diversification though, since... 500 companies instead of one or two. "Sheesh". Except all your assets are in in one asset class (equities) in one country (US). Ask the folks in Japan who were around in 1989 how that can work out.

twic 3y ago

And how did a portfolio of randomly selected dot-coms of that vintage do in comparison?