The best investment advice you'll never get
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The best investment advice you'll never get
1–10 of 94 posts
Re: The best investment advice you'll never get
#2A well-written article, but really? Investing in a low-cost broad index fund is the /only/ investment advice I get nowadays.
Re: The best investment advice you'll never get
#3A well-written article, but really? Investing in a low-cost broad index fund is the /only/ investment advice I get nowadays.
I suppose index funds are fine if you can time buys/sells with the booms and busts. These days I sure don't feel like holding them. It's sad but the best bet is just picking the hot algo stocks.
Re: The best investment advice you'll never get
#4A well-written article, but really? Investing in a low-cost broad index fund is the /only/ investment advice I get nowadays.
I suppose index funds are fine if you can time buys/sells with the booms and busts. These days I sure don't feel like holding them. It's sad but the best bet is just picking the hot algo stocks.
it's impossible to time the market, so instead you use dollar cost averaging to invest at a constant rate, regardless of how things are in the market. put money in both when it's expensive and cheap to do so.
Re: The best investment advice you'll never get
#5A well-written article, but really? Investing in a low-cost broad index fund is the /only/ investment advice I get nowadays.
true, you get this advice everywhere. but actually implementing it for realz isn't for the faint of heart. it's not impossible either, especially if you don't mind horseshoes-and-hand-grenades approximation.
If you want optimal as in mathematically optimal fund selection, then Bill Sharpe's startup, Financial Engines, does that (if you have at least $100k at Vanguard, you get it for free, also through many employers). https://personal.vanguard.com/us/insights/retirement/financi...
Re: The best investment advice you'll never get
#6A well-written article, but really? Investing in a low-cost broad index fund is the /only/ investment advice I get nowadays.
You probably have a breadth of knowledge that comes from reading sites like HN, but the problem of course is that most people get their investment advice from banks and other investment professionals.
Re: The best investment advice you'll never get
#7Earlier quoted context omitted.
I suppose index funds are fine if you can time buys/sells with the booms and busts. These days I sure don't feel like holding them. It's sad but the best bet is just picking the hot algo stocks.
it's impossible to time the market, so instead you use dollar cost averaging to invest at a constant rate, regardless of how things are in the market. put money in both when it's expensive and cheap to do so.
I certainly disagree with you that it is impossible to time the market. There are many forms of technical, statistical and fundamental analysis that help to time the market. A key element to trading is removing emotional bias. I am aware of many people that are successful traders.
I will note that the market is much different today than it was in 2004. Today HFT accounts for 70% of volume. That is huge. I think having an investing strategy that does not assume an asset will always go up is important.
Re: The best investment advice you'll never get
#8A well-written article, but really? Investing in a low-cost broad index fund is the /only/ investment advice I get nowadays.
You probably have a breadth of knowledge that comes from reading sites like HN, but the problem of course is that most people get their investment advice from banks and other investment professionals.
Like Ameriprise. Ugh.
Re: The best investment advice you'll never get
#9A well-written article, but really? Investing in a low-cost broad index fund is the /only/ investment advice I get nowadays.
Having also read this a lot, it makes me wonder how the clever financial world will find a way to take a lot of people owning index funds and somehow fleece them.
I also find myself pondering the macroeconomic effects of a lot of the market simply being in index funds, though I'm sure we're a long ways from that.
My personal rule-of-thumb "By the time you've heard of it, it's too late to get in on it" is also triggering, though I have to admit for the life of me I really can't imagine how to exploit this tendency. But I am anything but a financial wizard.
Re: The best investment advice you'll never get
#10Just a question that popped into my head: what would happen if everyone followed a passive strategy, ie, no one was active? Isn't some sort of active strategy required, somewhere, for funds to be directed at all?
Though, I do think on average fund managers probably don't actually make anything like useful predictions. But perhaps we do need someone, somewhere, looking for good investment.
My guess is that there is a role in society for some conservative, value based investing, but at the moment there are more people trying to do this than is useful, and even more people trying to find good investments by worthless strategies (like trying to predict future movements from past movements).