Discussion about the meme market and the latest news on meme stonks.
Nice. This is a solid investment strategy. Here are a few thoughts:
You avoid panic buying and selling this way. Kudos. Don't change.
You avoid the temptations of standard day trading. Also smart.
The markets represent way WAAAAYY too much profit opportunity for large players. So the stock market will be around for at least a few more generations. New rules? Sure. Prolonged contraction/correction? Sure. But it will be there in 20-30 years as most of us enter retirement age.
- Another approach is the Nassim Taleb contrarian/shorting approach. Buying ETF's that short the market is also a strategy to add to one's portfolio. The downside is that you have to keep track of them. They need to be managed - they lose value in the long run if left unattended. Another weakness is that it requires an element of timing. So use with discretion.
MOST IMPORTANT INVESTMENT ADVICE I EVER RECEIVED:
Have an exit strategy. BEFORE I buy anything, I determine my goals. What am I looking to get out of this? Double my money? Grow by 10%? Whatever it is, have a plan in place. Simply saying "Hold until retirement" is NOT a strategy because what if the markets are down? Then you broke rule #1 which is buy low sell high.
Have a plan.Read More
@TiberiusBravo87 Have you looked at how it is calculated? Core inflation excludes food and gas and is around 5-6%. Rent is up 25% for example at least as it is calculated. If you factor in food and energy then it’s 8-9%. This means that food and gas are way higher as they raise the average by that much.
@slutmagazine Can't add the "should" part of that sentence when statistics are fudged. That is a base fact. They keep saying inflation is 8% or some estimating as high as 11% yet my food costs much more than 11% higher. My fuel costs are now more than double than when Biden stole the 2020 election. The stats are all bullshit so of course nonsensical things like futures dropping when they shouldn't be will happen.
@TiberiusBravo87 First, a few disclaimers on what I'm about to say: I'm a financial layman, I play safe and long-term with my money, and I go by gut feeling a lot, only bigger picture stuff. So don't take my advice (I'm also interested in what the more knowledgeable people on here have to say on this).
Except from a buffer that would pay my bills for three months, I put all my leftover money into various index funds - mostly global, but some national and regional as well. I don't invest more than I can hold on to, and not sell, during a crash.
I pay attention to the news. Whenever there's a panic of some kind, doesn't really matter the kind as long as it can potentially influence faith in the markets, I wait for a day or two for people to panic, and then I buy funds (only index funds, I don't wanna pay more comission than I have to for some person to play the lottery on my behalf).
Some economist out in the media, warning people about the markets? I buy. Bad news from Ukraine? I buy. Monkey pox outbreak? I buy. Whenever my colleagues at work are collectively worried about something in the news picture? I buy.
So I don't invest steadily, like "this much every month" and let it go automatically. I may save up a decent amount in my bank account, and then invest it all in one go depending on how much bad news there are in the media, how much panic.
Long term, I have faith in the markets. I don't see a prolonged scenario (15-20 years+) where the overall global economy will shrink. I have faith in technology increasing productivity long term, even if said technology means people are getting laid off. The energy crisis will be resolved. Once all the "green" people feel the result of their beliefs in their personal lives, and on their personal economy, there will be demands of clean, nuclear energy. Because unlike wind and solar power, nuclear power is actual technological progress. Even some climate ideologues are already calling out for nuclear energy.
Russia-Ukranie will be resolved too, one way or the other, and the flow of goods and services will resume and increase. And as for inflation, having your money in funds rather than in a bank account, offers some modum protection against that. So it's a double-win in that sense.
So that's my general thinking - a lot of gut feeling bigger picture stuff, combined with shorter term gut feeling gauging the general mood in the news cycle and populace. That's what I go by, within fairly safe boundaries. COVID was a fantastic investment opportunity as far as I'm concerned, Russia-Ukraine is going to turn out the same. Now I'm just waiting for a China-Taiwan panic, and I'll invest my next batch of savings.
But like I said, don't take this as advice. I don't really know what I'm doing, I'm just feeling what I'm doing if you catch my drift. Feedback would be much appreciated, cause there's always the doubt.Read More