421–430 of 640 posts
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Not really, indexing beats hedge fund managers over something like a 12 year stretch.
hedge funds are not the same thing as picking individual stocks. Not even close. Index funds are an averaging mechanism to reduce risk, not to maximize return (you can easily beat the average by allocating on the p75 instead for instance)
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Good, what’s your plan of resolution?
I answered you in the other comment, but my "resolution" would've been not carving out a chunk of a number of middle eastern former colonies and turning it into a Jewish ethnostate. But that's done now, and now Israelis have lived there for so long that simply "packing it up" and moving them elsewhere is now also, if not equally IMO, problematic as an action. Israel is itself a project of the latter end of colonialis…
That's a lot of words to say you have no resolution.
> I don't know how you fix it, apart from letting Israel demolish Palestine, and all the human horror that comes with that.
I see. Maybe you do have a resolution.
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hedge funds are not the same thing as picking individual stocks. Not even close. Index funds are an averaging mechanism to reduce risk, not to maximize return (you can easily beat the average by allocating on the p75 instead for instance)
The problem isn't allocating, it's reallocating correctly. That problem space is much more complex for an entrenched account.
Some guy wrote a book recently and claimed that about 10% of workforce-eligible men are long term out of the workforce, due to some type of disability. Also 50% either aren't engaged at work or don't really do anything essential, meaning their job could disappear and it wouldn't be a huge impact. https://www.richmondfed.org/publications/research/econ_focus... https://www.frbsf.org/research-and-insights/publications/e…
> They expect the problem to worsen. The stock market has climbed 23% this year... The problem will resolve itself if (when?) the market crashes. I remember the run up to the dot-com bust. I was too much of a bumpkin at the time to even know how I would trade stocks — but I listened to an acquaintance go on and on about how much he was making on the market. At the time I guessed that he was much smarter than me — tha…
This sounds like a terrible way to "solve" the problem
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Broad brushstrokes incoming and pure speculation but I wrote it out anyway… Today’s youth are more proactive with their identities these days than we were. We were and remain reactive with our identities. That preference influences what triggers the dopamine hits needed for life. The drugs of a reactive identity culture are sugar, alcohol, narcotics, work, anything that’s a trope in movies made by boomers. These drug…
"Our youth now love luxury, they have bad manners, contempt for authority; they show disrespect for elders, and they love to chatter instead of exercise. Children are now tyrants not servants of their household. They no longer rise when elders enter the room." — Socrates
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DCA in my understanding is automatically investing a fixed amount at fixed intervals. E.g. $100/month, or whatever. The amount and interval aren't all that critical. The point is to do it automatically and not try to time the market. Yes I also have heard the advice to dollar cost average a lump sum, not so much in the scenario of a rollover of an existing investment, but when a large amount of cash has become availa…
A year is pretty extreme. If you cut a lump sum into a series of transactions over a couple weeks or even days it is just about the least expensive way to exchange earning potential for reduced volatility. You miss out on like 2 weeks of earnings in exchange for a huge reduction in the chance that you buy in and are immediately down 2% or something.
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The Gov't / Federal Reserve has made it clear they will not let the value of assets drop significantly ever again. The entire planet's capital is now betting on US equities going up and to right forever, and all levers will be used and invented wholesale from nothing to keep that going.
The federal reserve literally just got through a monetary tightening policy that paid zero regard to the stock market. The fed will juice to keep employment up and tighten to keep inflation down. They will not support stocks at the expense of those mandates
> They expect the problem to worsen. The stock market has climbed 23% this year... The problem will resolve itself if (when?) the market crashes. I remember the run up to the dot-com bust. I was too much of a bumpkin at the time to even know how I would trade stocks — but I listened to an acquaintance go on and on about how much he was making on the market. At the time I guessed that he was much smarter than me — tha…
Take the NexusTrade guy on Reddit as an example. He created his own investment tool and is now in conversations with Wall Street professionals.
It’s so accessible now that with just $100, you could invest in a stock like NVIDIA, double your money in a week, then reinvest across multiple stocks and multiply it again. Suddenly, $100 turns into $2,500 in no time.
I get your point about everyone making money, but why is that a bad thing? Isn’t it great that anyone can do it? These platforms are practically making money for you, whether you’re at work, at home, or even asleep. Like someone once said, “If you can’t make money while you sleep, you’ll work until you die.”
It’s never been easier to earn significant amounts of money, and it doesn’t look like this trend is slowing down anytime soon.
Many criticize the retail investor for treating the stock market like gambling, but I think it really does resemble gambling more than investing these days. How many times have we seen a companies value jump or fall by billions based on a tweet? How many meme stocks have we seen? How many pump and dump SPACs have there been? How many companies have never (and likely will never) made a dime in profit but see their mar…
In that sense, value investing has always been dead—most people were never interested in that. That's why value investing worked.