Every cuck out there shills for Vanguard and Black Rock and Shwalb and other (((investment banks))) that sell AMAZINGLY LOW RISK and LOW COST investments that yield %10 a year on average over the long the term.
Martin Shkelli actually tried to red pill people on his stream once about this and the feed was cut off and the video deleted. He basically got the jist of it out which is:
There’s zero guarantee that the S&P500 will behave anything like it did in the past 100 years in the next 100 years.
If you look at S&P 500s for other countries some are losers and some are low winners. It’s just not clear what horse to bet on the U.S. is not guaranteed any more than Japan.
Yet every internet financial expert shills for these things. Some even say “dont buy a house” “rent and invest in index funds”
Also all those retirement plans, roth ira, 401k are all basically the same shit
Index funds are a bubble. More than 50% of all inflows to us markets are going into indexes which is causing them to rise regardless of the fundamentals of the underlying securities.
The reason that index funds are zero fee is because the index fund operators are lending the securities in the index to short sellers and making a fee from the borrow cost. If indexing kills active managers then there will be no market to borrow shares and zero fee index funds will not exist.
I expect that indiscrimanate buying of indexes will turn into indiscriminate selling at some point in the future but I have no bet on this because it’s not possible to time
Austin Diaz
The past does not guarantee the future, true. But in the big picture, prices generally follow earnings, earnings generally follow productivity, productivity generally continuously increases. Simple as that.
That being said, I agree with the user above me. Passive investments are in bubble, and efficiant market theory is bunk.
Daniel Wright
So how do you plan to retire? Is real estate the answer?
Hunter Nguyen
Yea shkrelli was big on saying that “passive income is a meme”
Caleb Hill
If index investing was your retirement plan you are a boomer retard. There is no single solution. The closest thing is physical silver but I am long Bitcoin, ethereum, Monero, silver, gold, platinum, 5 year and under US treasuries, and a few energy names.
Julian Clark
/Thread trips of truth
Index funds are a bubble.
Aiden Bennett
Then how thefuck do you retire?
Ayden Ramirez
First thing I say is don't listen to this board. Learn investing fundamentals, recognize there is no easy get rich quick scheme. Don't throw money at something you don't understand just because the heard is doing it. Cut expenses and raise income. Simple.
Liam Baker
Oh and be patient. The hardest this is actually waiting for the right opportunity. Not a game of baseball. There is no 3 strikes and you're out rule.
Ryan Stewart
The problem with index funds are the indices themselves. Large cap stocks which are vastly overpriced make up a disproportionate amount of the index's value (FAANG for example). When these stocks collapse (as they always do, like in the Dotcom era or the Nifty Fifties) then the whole index goes down and all the retards in index funds lose all their money.
(The 7-8% historical average of return is misleading, because when your portfolio collapses by 50% in one year it takes decades for compound interest to appreciate and return to its former value.)
Asher Morris
1. Diversification: depending on your investment objectives, your portfolio should be focused on a variety of mutual funds and ETFs that capture a broad variety of sectors (index funds are NOT diversified enough by themselves, you need to make sure you have exposure to industries which are not adequately reflects in the indices)
2. Regular investing: put roughly the same amount of money into your investments every month; even when your portfolio loses lots of money over a year or three, the funds you contribute during this time will net you huge returns when the market picks back up. Don't be a retard and sell out at the bottom because you didn't have enough cash on hand to survive a market downturn. Don't be a retard and stop contributing to your investments during market downturns.
3. As you get older, transition to more secure investments such as fixed income via US treasuries and other ultra-safe products. Transition slowly from 90% stocks/10% bonds to 10% stocks/90% bonds by the time you retire.
Good post. Say hypothetically you made 20-40mm in crypto over the next 5 years. What would you do with it to protect it? How would you diversify that amount?
Gavin Garcia
With that amount of money I'd probably go to a large bank that offers private wealth management services. They will help you cash out of your crypto while considering all the relevant tax laws and minimizing your obligation to pay taxes. They will also help you get access to investments that aren't available to most people via private equity and venture capital firms.
Benjamin Brooks
Like BoA? I’ve heard a lot of ultra rich people bank with them
Jaxson Miller
Bank of America, JP Morgan Chase, Citigroup, Deutsche, Fidelity, Barclays are some of the bigger names.
Gavin Ward
Cool, thanks fren
Jose Powell
>If index investing was your retirement plan you are a boomer retard. There is no single solution. The closest thing is physical silver
Retards in glass special ed busses shouldn't throw stones without their helmets on.
James Gomez
>Some even say “dont buy a house” “rent and invest in index funds”
a house isn't an investment its a lifestyle choice you retards have been fudding indexing for several years now and absolutely nothing has happened
in your own post you've outlined the fact that indices have always been made up of mostly the most expensive large caps, and yet in that same timespan we know what the return was; the likelihood of lump sum investing right before a 50% crash is infinitesimal
we've heard all of this shit before, and we've heard it for over a century
Jesus Christ fund managers have really gotten in your heads
I bet you all love paying 1% fees to underperform huh?
Joseph Young
They are not a fucking bubble. This is something repeated by faggots who read some articles by a couple analysts (and fucking mutual fund managers, for fuck sake, who are obviously going to be anti index funds) and now think they are an expert because it's a contrarian point of view.
The rationale they use can be made with so many other investments.
If you think index funds are a bubble you should get off this board.
Grayson Brown
>suggesting Deutsche bank
This board is full of retards.
Congratulations, you just mentioned the largest banks you can think of.
You should never give financial advice.
Connor Davis
you don't. if you listen to boomer tier strategies you'll get btfo when the world economy no longer functions on those principles. the transition away from these "fundamentals" is happening right now >90% bonds 10% stocks in retirement in a world with negative interests rates, good luck with that lmao
Henry Carter
I'm starting a literature review that involves this idea. The index fund issue is more of a Jow Forums problem because of voting rights. It seems like it's not so much of a Jow Forums problem because the management of the index balances out via active management.
Luis Ward
The problem with index funds shilling is that they also advocate for buy and hold. Now that 1/3rd of the market is in index fund there's a real chance that any selling will cascade super fast and you'll be down 50% in no time. You need to be active with your passive strategy. Keep on top of the general trends or you'll be the one who will be holding institutional bags. I don't agree with people who're saying it's a bubble. It's just the new fad of 21st century. And like all fads before it, once everyone starts doing it, it will stop working. It could 50% it could be now. But it will stop working at some point and active fund managers will start outperforming again.
