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"Rule number 1: Never lose money. Rule number 2: Don't forget rule number 1.”
I am fortunate in that I only need to spend a proportion of my pension income each month, and I save money from my income virtually every month. I have actually increased my investment risk profile in order to hopefully increase the long term rate of return of my investments, and this is in the face of reaching that time of life where financial advisers like to tell you that you've got to give your hard earnt money away!
e.g. instead of investing all on the S+P500 tracker, you could invest some of it in options on the S+P
anyway, here's investopedia's explanation of Buffet's rule 1
so, if you are retiring this year, don't invest your life savings in meme stocks
It's generally been a pretty bad couple of months globally. Mostly due to Omicron fears and the knock-on effects.
I assume that once things start reopening investors will be more confident and drive prices up.
My advice is to not sell anything right now. I expect Early March we will be back to November levels.
Disclaimer: I am not a financial professional.
Take the long view, this is business as usual.
And no one thinks it's already over-valued?
Also, most of the 500 companies in the S&P500 are not over valued, it's the top 6, Apple, Microsoft, Meta, Tesla, Alphabet & Amazon that could be considered over valued that skew the index. However, It would be hard to bet against Apple at the moment, I can see them hitting a $4 trillion market cap easily based on their performance. Apple make up over 40% of Berkshire Hathaway's portfolio.
As Warren Buffet says, regularly buying a low cost broad cross section of America, such as the S&P500, is all the common investor needs to do to become very wealthy over the long term. $10,000 invested in 1941 with dividends reinvested would be in excess of $51,000,000 now. America will be very successful and so will American businesses during this century, albeit in fits and starts.
Donald Trump would have more money now by doing just that than pursuing his real estate career with the money his father gave him at the start of his career, with zero effort.
"Buy VOO (Vanguard's S&P500 index fund) and chill" as many American say and do.
S&P500 Linear:
S&P500 Logarithmic:
Can you find a precedent for the 2010-2022 rise?
In fact I do wager it, I am FTSE USA Index and chill.
Why?