5 ms·
Someone told me that part of the reason for the great returns of the stock market in 2013 was because of the fed's quantitative easing program. They said that
by ap22213 13y ago
Someone told me that part of the reason for the great returns of the stock market in 2013 was because of the fed's quantitative easing program. They said that the easing was increasing the money supply, and that money has no where else to go except into the stock market, because all other investments haven't had great returns.
Is there any merit to that? I was planning to keep investing in stocks because of that. But, really I know nothing.
- pyrrhotech 13y agoYes that's largely the reason
- swalsh 13y agoWarren Buffet has only a few basic rules. Amongst them is only invest in things you understand. I think as a general rule, its a pretty good one.
- ap22213 13y agoUnfortunately, I don't understand much. So, I just invest in S&P500.
- enoch_r 13y agoBy doing so, you'll beat the post-fee, ex ante performance of actively managed mutual funds[0]. You're doing exactly the right thing--investing in broad-based indices rather than trying to beat the market. As your time horizons get shorter, you can move some money to bonds (treasuries, bond ETFs, etc.) to decrease your risk (and reward). [0] http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1356021 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1356021
- pyrrhotech 13y agomuch better than investing with a some wall street fund that charges exorbitant fees to lag the market