41–50 of 110 posts
Are there any tools to take your existing porfolio and play out scenarios like this? Eg positions in 100+ stocks aggregated from 401k, Roth, 529, etc and see best guesses as to how I'm exposed?
Just make a truly diverse portfolio and never worry. Lots of efficient portfolios explored here.
https://portfoliocharts.com/2021/12/16/three-secret-ingredie...
It would be like SVB all over again. Small governemnt, anti bailout, pull yourselves up by your bootstraps tech CEOs on TV crying and begging for someone to cover their losses.
I've never felt right about the framing of "destroying wealth" when stock prices go to some new number. If anything, the word "reflecting" seems more applicable?
Why does it matter? Government learned during covid they can spend there way out of a crash.
Apple is in the "AI-related companies in the SP500" group? Microsoft too? Tesla too? Amazon too? But... if these companies' AI efforts fail, 95%+ of their revenues would be unaffected. So big stretch to paint them with that brush.
Nvidia, OK that one is obvious. Meta, Alphabet, OK.
But MOST of the companies listed in that chart are only "AI companies" in the sense that EVERY tech company building peripheral AI into their products is an AI company.
Case in point: if Apple stock goes 'on sale' as part of an AI-bubble sell-off, are you really deciding whether or not to buy based on their AI-ness?
None. The prices are estimates of value not the value itself.
I'm just waiting for the next massive knee jerk reaction in the stock market to start seriously investing again. AI is not going anywhere even if there is a bubble but people are going to make stupid narratives on it being over for Nvidia and tech.
I've never felt right about the framing of "destroying wealth" when stock prices go to some new number. If anything, the word "reflecting" seems more applicable?
Yeah. You don't own more or less of anything. Five sticks of gum, a car, 10 shares of $MSFT, a Mewtwo Ultra Rare. You have exactly same assets as before. The businesses of which you are a fractional owner have the same fundamentals. But other people won't trade other assets for yours at the same rate.
I've never felt right about the framing of "destroying wealth" when stock prices go to some new number. If anything, the word "reflecting" seems more applicable?
If you're in a "selling stock" part of your life I understand, but if you're in a "buying stock" part of your life it's worth reflecting on the quote until you can shake the "recent price action IS investor psychology" out of your head.