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There is a universally agreed-upon approach, but is it actually correct? Usually, investing in the thing that people have invested in for the last 20 years is a
by inigyou 3mo ago
There is a universally agreed-upon approach, but is it actually correct? Usually, investing in the thing that people have invested in for the last 20 years is a good way to buy at the top.
- donkey_brains 3mo agoThat’s why that’s not the standard advice. It’s index stocks hedged with bonds. If you manage to buy at the “top” of your entire country’s economy, you’ve got bigger problems at that point.
- inigyou 3mo agoBuying after any previous crash, instead of before, gave you 10-20 years of extra retirement. If you waited 10 years in cash for a crash before going all-in, you came out ahead.
- megapolitics 3mo agoDoes that assume that you're able to perfectly time the investment with the market bottom?
- inigyou 3mo agoOnly within a few months. Buying soon after the crash versus buying soon before the crash.
- blitzar 3mo agoThose that pick bottom get smelly finger
- ben_w 3mo agoIIRC, "Buy index funds. The end."
- inigyou 3mo ago> Usually, investing in the thing that people have invested in for the last 20 years is a good way to buy at the top.
- staticman2 3mo agoYes it tends to be correct because the other option, invent a trading scheme, tends to work out worse for investors who attempt it.
- inigyou 3mo agoOr we can admit the entire system really sucks.