What if the market drops by 67%? That means I would have to go up 200% to get even. That could take a couple decades at 7% CAGR. I'll be a crusty ole hag with one foot in the grave by then. If I discount for inflation then the money I just put in will never be seen again. Gone forever. To the sea. Just like the song.
You should invest consistently and not try to time the market. This isn't a casino, you shouldn't be trying to get rich quick.
Yes. You put X dollars in per year, consistently, forever. If you want to play by adding money above your base investment that's fine but statistics have shown that over 90% of people that attempt to time the market underperform vs index funds overall
The only stupid thing is what you are doing which is ignore the most safe and sure way to make money
You’re going to think I’m mean here, but your recent performance is an example of why your current strategy is ill advised
Except that's wrong, because indexes track the market and the only way for the index to be a bubble is if the market is also a bubble. Actively managed funds very rarely beat the market over a ten year horizon. Basically stop thinking like a gambler and start thinking like a buy-and-hold investor. All of this advice you hear about bubbles etc is wrong as often as it is right, and crash predictions are far more often than not wrong (a bond market crash has been predicted since as early as 2010 yet has failed to materialize, for instance, costing people who listen to such nonsense a ton of money).
Can't help you when you're buying into sensationalist crap like that. Garbage in, garbage out.
If rates go up, bond funds will lose value more than gain income.
Warren Buffet said:
Your mutual fund manager has probably failed for the past 15 years
No, he's not. He has a very different investment strategy than you or I. He waits for big opportunities in undervalued companies to present themselves and tries to keep enough cash on hand to make massive investments as these opportunities arise. You can't truly invest like Warren because you lack both the insight and the capital. He doesn't play markets, he plays niches and always has. So I guess continue listening to all your hype and not making money- the same hype that made you invest while things are hot rather than consistently over time will burn you again and again.
Read the article, hell, read every study ever done on hedge fund performance. Generally they all perform worse than the market, on average. Stop listening to your feels and cherry picking wins and look at the data
You do you and ignore every bit of practical investing advice out there. This is a common mistake amongst physician investors- they assume "I'm highly intelligent, I can outperform the average." It is why physicians, on average, severely underperform in their investments, as they ignore practical and proven advice for trying to blaze their own foolish trail
“I don’t want to burn my hand on the stove, I just want to not not put my hand on that red circle”
Warren Buffet said:
You don't know when the sale will be or how much it will be for. That's why people fail at properly timing markets on a consistent basis. Rely on the law of averages, not being the doctor that does better than most hedge fund managers, because let's be honest, you're not that good
But what about the other FAANGs? All these vanguard ETFS have nearly the same top ten holdings. Can't you see why the cap-weighted indices have gone up non stop? It's this stupid passive philosophy.
