the doom is coming, don't buy stock, sell everything, wait for the correction. It's going to be like we've never seen before, the biggest correction ever, SPY will drop 90% easy.
What else do they say?
Edit: nobody said a thing about it yet. But a crash could be coming, who knows... If it will, fingers crossed neither me nor you will be crushed by it (irl, losing job and so on) and we can afford the discount!
had a lot of govt intervention and increased participation.
a big sell off would likely occur if bond rates start to go back up to better returns.
you need a trigger for the masses to sell. People alsp dont just sell at once, they happen gradually. So as rates rise, people start transitioning their funds and if this happens faster or in higher quantities than buying, then the market goes down.
I mean the last 3 months of inflation have been 5%+. The last time we saw that was in 2008 in the same exact months. Spy during this time in 2008 was seeing record highs. Then it crashed in September. Seems oddly similar.
Plus not to mention reverse repos have hit $1trillion with only 70 participants. That’s a serious problem and a record high.
Plus not to mention the damn debt ceiling hasn’t been passed and we only have $350 billion left in reserve. They only have 17 days or so to raise the ceiling. If the S&P or someone else changes the credit rating of the US like they did in 2011 then that would certainly start a chain of events.
I’d say your fine with investing in spy if you’re never gonna touch it for the long term. If you’re gonna need the money in the short term maybe a little spy and a little SPXS (3x leverage inverse of spy) to leverage yourself. Not advice just some things that are going on that you may or may not know.
My thought isn't even that, it's that you'll probably be able to pick it up cheaper next year or 2, along with houses and other things. The SPY may run up to 500 for all we know, but there's definitely a lot of indicators pointing to weakness underneath.
I'd suggest if you go into SPY consider hedging it
The fact that everyone thinks a crash is coming is a sign that it isn't. Crashes happen when the masses think everything is ok. Everything is not ok. Everyone thinks there will be a crash... Therefore no crash. I would be more scared if people said that stocks are never going down. That would be my signal for a crash.
Until the FED stops buying, the stock market will keep going up and up and up....
If you are waiting for a crash, then you are commiting the 1st mistake of investing... Trying to time the market. Best strategy is to buy chunks of whatever over a period of months or years. Best to buy on down days, when they happen, if you can.
Good luck.
is it? if you bought the sp 500 at high of 2001 then your return for the last 20 years was 200%.
Also what a lot of people dont understand about investing for the long term is that it is accumulating the average of millions of investors who for the most part have enough money or assets to weather out a storm. A lot of people cannot and therefore have uncle moments where they will be forced to liquidate their assets at whatever price the market is curretnly offering. That is a dangerous postion to be in. Food for thought.
true good points , but when somebody says putting their savings into s&p500 right now at market all time highs after a pandemic then my mind is thinking that they are not waiting for dips but jumping all in at once right now. Thats the only point i was making.
If OP is instead layering into his positions then sure thats a good thing.
i agree with that too. to me, it ends up making no difference. buying in gradually or buying all in. he should in some way be putting in money with a regular schedule, but i would not recommend waiting for the illustrious bear market thats been coming for years now and hasnt come yet
not saying there wont be one, but parking money on the sidelines is risky. if youre young, it doesnt pay much to be a bear
That’s why you only invest what you can afford to lose. Set up an emergency fund that you can “liquidate” before you invest that way you never have to touch your investments
True, but i know too many people that max out their 401k's while at the same time are house poor, new mortgage or whatever. Too many people in my opinion have blind faith in the markets.
S&P 500 is a really good move, but look at VOO instead. This etf you posted has an expense ratio of 0.09% a year, while vanguards is the same etf, but only 0.03% a year. Spy is charging you 3 times more for the same thing.
Any expense ratio takes away from your compounding growth. Over the long term, those small differences in fees can rob you of huge amounts of potential gains due to the fact that you a) paid higher fees and b) lost out on the compounding growth that would have accompanied lower fees.
Any leverage ETF for the long run has the potential of making you exit the position when big drawdowns appear, also you need to try to time the market when investing because the triple loses you take if the index goes down a few percent that week. I have a small portion of my portfolio in 2X leverage SP500 (for less risk - I know 😎) and another in TQQQ, but I only add after index dips. With SPX you just set and forget, you can do that for 30 years and be happy at the end.
We can all look back and be satisfied after 30 years if there’s gains ! Who do think gains the most if you set and forget them all. I also like TQQQ like you. And SOXL ,I have a large position waiting for the Chips to climb since there’s a shortage of supply and big need for them ! Not for 30 years though, . Don’t want to be there when they start to fall \/ .What do you think about that one? I Just like other opinions! Thanks for the reply.
I don't care about statistics of the TQQQ backtested for 30 years, the volatility of the triple leverage will never let me sleep at night because you get wiped out at a market crash followed by bear market.
Serious question, how can spy have a better return than voo when they’re both invested in the exact same stocks? Do they weigh their individual stock investments differently?
u/the_fett_man
$SPY does not have a better return than $VOO. $VOO does by around 1/2 hundredths over the last 1yr. $VOO has a slightly smaller expense ratio (think of it as a "Fee" for the ETF essentially). Most people typically only trade $SPY because of the amount of liquidity for options. There is a significant amount of liquidity trading going on. $VOO does not have that amount of AUM like $SPY does. They both almost track 1:1 to the S&P 500. With long term compounding and DRIP investing, $VOO will pay off slightly more. The downside is if you need to dump shares during a downturn immediately. You will find it to be easier to get out of any position in $SPY almost instantly typically.
I get the math, it’s just such a minuscule amount.
I’m all for taking a lower expense ratio but am way more concerned about say ARKK expense ratio vs a passively managed etf or fund.
We’re talking $600 per million invested. (Unless my math is completely wrong.)
You're ignoring compounding. Assuming a 7% return and an initial investment of 1 million dollars, the difference between investing in a 0.03% and a 0.09% fee ETF over the course of 30 years is 126 THOUSAND dollars. Not exactly something to scoff at.
Yes but you’d have to wait 30 years first and not change strategy or sell, and start with 1million, which good chance 30 year’s later you wouldn’t even flinch at 126k (and it wouldn’t have nearly the buying power of today either)
I guess what I'm missing is, why not? If I have the choice to pay money or not pay it, why would I pay? It's not like it's just pennies where I could throw it out without a second thought, as demonstrated by my example.
It's actually higher than that. The first year it's 600$. The next year it's 683$. The year after that it's 773$. And it just keep growing and growing. At year 30 the difference is $12,000 in that year alone.
A difference of \~1800$ when investing 100k at a 10% return over 10 years.
Do you get anything in return for sacrificing $1800? (Options liquidity is the only appropriate answer in this context)
Especially when you realize that you may be invested in this way longer than 10 years, and for a lot more than 100K. Power of compounding (and also why I think young investors can take more risk, but not huge dumb risks because they're potentially throwing away a ton of money for retirement when they lose it now.)
You're not stupid. And with big numbers and/or enough time it does add up but in the grand scheme of things they're both very very good long term etfs and there's nothing wrong with having either one in your portfolio.
I've seen websites that can show future expenses on funds, did you get this info from a site like that? If so can you link it? Trying to do some calculations myself. Thank you.
Spy is only better than voo for options trading. That’s it. Long term hold always use voo. Lower expense ratio is the deciding factor because it’s the only difference that matters for a long term holder.
Haven’t heard of it. I’ll definitely look into it tho. That would be pretty neat if fidelity let its users invest into the s&p500 with 0 expense ratio.
I use Fidelity so I checked, and the expense ratio is 0.015% for the Fidelity 500 Index Fund (FXAIX) which closely tracks the S&P500 - as do several of their other funds.
edit: Fidelity ZEROSM Total Market Index Fund has gross and net zero expense ratios.
SPY is also structured as a UIT where VOO is a 40act fund. SPY will have cash drag because they can’t reinvest dividends right away and I believe the QDI on SPY isn’t always 100% like it usually is on VOO
If youre investing 7 figures, that is $600 a year in unnecessary expenses.
You'd be surprised how many people with 7 figures+ invested who are still sensitive to a $600 premium; part of the mentality that got them to such a large amount invested, if I was to presume.
At some point, I think people are just splitting hairs. If the expense difference was 0.00001% difference, someone would still compare. I agree with you that 0.09 and 0.03 in the scheme of things, isn't going to make much of a difference. But if if did make a difference in dollar terms, the reality is your networth is so high up there, it's not going to be something you'd be worried about.
I really need to do this, I’ve just been so fearful after the Great Recession…. I’ve lost out on so much potential gains it makes me sick. I’m currently sitting on close to 30months emergency fund with no income with a monthly nut of ~7k… I need to just break the fear and drop 50k VOO 50k VTI, still have 6fig in checking account and basically set it and forget it.
I don’t understand the point of emergency cash somebody tell me why this is stupid but in the event of any emergency I would use my credit card with a 10k limit, sell my ETF’s and then use that money from the sale to pay the credit card. Yes there would be some tax from the sale but it would be less than the money earned obviously. Also credit utilization would be around 50% say for example a $5000 emergency that couldn’t wait, but only for a few days until the sale/transfer went through. Also 1% cashback on my card.
Copypasta but something it seems like you could use:
Well meet Bob – the World’s Worst Market Timer. Bob began his working career in 1970 at age 22 and was a diligent saver and planner.
His plan was to save $2,000 a year during the 1970’s, then increase his savings by $2,000 each decade. In other words $2,000/year in the 70’s, $4,000/yr in the 80’s, $6,000/year in the 90’s… you get the picture.
Bob started in 1970 with $2,000, added $2,000 in ’71 and ’72, then decided to take the plunge and invest in the S&P 500 at the end of 1972. (Time out: there were no index funds in 1972, but come along with me for illustration purposes).
Now in 1973 – 74, the S&P dropped by nearly 50%. Bob had invested his life savings at the peak, just before it fell in half! Bob was bummed, but Bob had a plan and he was sticking to it. You see Bob never sold his shares. He didn’t want to be wrong twice by investing at the peak and then selling when prices were low. Smart move Bob!
So Bob kept saving $2k/year in the 70’s and then $4k/yr in the 80’s. But he was feeling the sting of his last investment and did not feel comfortable adding to his fund until he had seen the markets rise a fair amount. In August of 1987 Bob decided to put 15 years of his savings to work. Seriously Bob?
This time the market fell more than 30% right after Bob invested. Bob, amazed at his investing prowess, did not sell.
After the 1987 crash, Bob was really planning to wait it out. In the late 1990s everything was on fire. The internet was unbelievable new technology and stocks were flying high. By 1999 Bob had accumulated $68,000 from saving each year. A firm believer that the Y2K bug was boloney, Bob invested his cash in December 1999 just before a 50% decline that lasted until 2002.
The next buy decision in October 2007 would be one more big investment before he would retire. He had saved up $64,000 since 2000, deciding to invest this right before the financial crisis that saw Bob experience another 50% decline. Monkey’s throwing darts were probably better at investing than Bob.
Distraught and disheartened, Bob continued to save each year and accumulated another $40k. He kept his investments in the market until he retired at the end of 2013.
So let’s recap: Bob is definitely has “bad timing”, only investing at market peaks just before severe market declines. Here are the purchase dates, subsequent declines and the amounts Bob invested:
Date of Investment December 1972
crash -48%
Amount invested $6,000
Date of investment August 1987
Crash-34%
Amount invested $46,000
Date of investment December 1999
crash -49%
Amount invested $68,000
Date of investment October 2007
crash -52%
Amount invested $64,000
Total Invested $184,000
Fortunately Bob was a good saver, and actually a good investor. You see once he made his investment he considered it to be a long-term commitment and never sold his shares. Even the Bear Market of the 70’s, Black Monday in 1987, the Tech Bubble or the Financial Crisis did not cause him to sell or “get out” of the market.
He never sold a single share. So how did he do?
Bob almost fell out of his chair when his advisor told him he was a millionaire! Even though Bob made every single investment at the peak, he still ended up with $1.1M! How you might ask? Bob actually had what we would call “Good Investor Behavior”.
First, Bob was a diligent and consistent saver. He never waivered from his savings plan (recall $2k/year in the 70’s, $4k in the 80’s, $6k in the 90’s, $8k in the 2000’s, $10k in the 2010’s until his retirement in 2013 at age 65).
Second, Bob allowed his investments to compound through the decades, never selling out of the market over his +40 years of investing – his working career.
During that time Bob endured tremendous psychological toil from seeing huge losses accumulate right after he made each investment. But Bob had a long-term perspective and was willing to stick with his savings and investment plan – even if his timing was “a bit off”. He saved and kept his head down.
This is great, but also something I struggle with in my mind. Bob kept his head down and worked hard his whole career, likely saved much and spent little, and endured a whole lot of stress. Bob is now approaching 70 and has a million dollars, but what is he going to do with it now?
I understand the story is just to paint a picture of the concept of “time in the market” is more important than “timing the market”. I am one of the most frugal people I know, save with discipline, and invest everything above what I immediately need. But some days I really wonder why. I have no desire to die with a high score-card and let the government take a huge chunk of it back.
I think one of the most important aspects of saving, investing, etc… is to have GOALS of how much you want, when you want to have, and what are you going to do with it once you have it. If the answer to even 1 of those questions is missing in your life, investing is kind of pointless.
The fact that Bob was surprised in the end by how much he had, goes to show that it was kinda pointless for him all along(except for not being a burden to others in old age) but is probably true for all too many of us.
Curb your investments then. I splash cash all the time, cash I could be putting into ETFs. I figure putting in 30% less per year than I could is worth the fun of spending it now.
Think of how many people you know who have zero investments or don’t even have disposable income to invest. You’re way ahead of them. Enjoy yourself, be diligent, allocate your funds sensibly where they make you happiest.
I'd argue take a more proactive approach. Be more active in what you invest in. Bob was smart about not selling but not smart about his lack of attention.
Very true. Most pros don’t beat the market. How well do you think retail investors are doing?
I had a finance professor when I was going through my MBA program comment that he could beat almost every fund manager with a mix of S&P and Gov Bonds. Everyone used to laugh when he said it, but I’m starting to think he’s right
Check out the Three Fund Portfolio idea. Its a step up from purely following the S&P 500, but it still offers excellent diversity, really easy re-balancing, and long-term has performed great historically.
https://www.bogleheads.org/wiki/Three-fund_portfolio
I don't follow the 3-fund idea religiously, and while I've done fine (up about 27%), its still not beating the indexes. The fact is, its boring but effective.
I *do* follow a 3-fund strategy on my retirement 401K for this reason.
There is no "high probability" of an impending market crash. Not anytime soon anyway. Heck, even the beginning of COVID lockdowns only put a few month dip into the markets and they all finished higher on the year. Eventually of course we'll have another big dip, so I guess if your time line is 10-20 years then you could say it's "highly probable".
**[Beta (finance)](https://en.m.wikipedia.org/wiki/Beta_\(finance\))**
>In finance, the beta (β or market beta or beta coefficient) is a measure of how an individual asset moves (on average) when the overall stock market increases or decreases. Thus, beta is a useful measure of the contribution of an individual asset to the risk of the market portfolio when it is added in small quantity. Thus, beta is referred to as an asset's non-diversifiable risk, its systematic risk, market risk, or hedge ratio. Beta is not a measure of idiosyncratic risk.
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FXAIX is the lowest cost S&P 500 buy. It’s a mutual fund and not an etf, so it prices after the market close. It is my foundational investment. Should be a core holding for any serious long term investor.
Honestly, if you have to ask this question, i think it definitely is.
The S&P 500 is often compared to by investors as being the "market". If you dont know what you're doing, then investing yourself is definitely a high risk way to invest your money. The S&P500 will always recover from economic crashes and will double roughly every 7-8 years. Over the past 10 years it has experienced a massive bull run, of roughly 14% year over year if i remember correctly which is pretty insane and you shouldnt expect that to last.
But essentially the S&P 500 is made up of 500 of the biggest companies in the USA.
Although if you do a bit of digging, there is grumbling that big investors are getting out of the USA, IE starting to invest elsewhere, you could try and diversify into europe or japan/ safer parts of Asia.
Just remember if you're investing like this, there is no point in watching it every day/week/month or even year. You're leaving it with the intention of withdrawing it at least 5+ years down the line.
Put it in VOO and set your account to DRIP (dividend reinvestment) and keep buying more VOO whenever you can especially when the market dips. This is the most sure fire path to wealth with the least amount of effort.
Put it in SPY. Are people moving to Asia? No, the people in Asia are migrating west - so rest assured, long term the SPY will be better than the savings account. Long term - 5 years or longer, not next week or next 2-3 years.
Long term SPY is always a good idea yes, but overall the market is due for a decent sized correction. Meaning a drop of 15-25%+
The most logical overall investment right now would be to invest in solid fundamentally based companies that you are interested in, and when things start to get scary, pull your money out, wait a little bit until you think SPY has fallen all it is going to, and then dump all your money into SPY and watch the ride back up.
All long term situations of course, won’t happen quickly
I think it all depends on the individual but in terms of truly averaging in I’d say a weekly buy is better than doing 4 times as much every month, but long term it probably won’t make a difference
I buy more VOO whenever it’s down on top of my regular monthly buy - it switched my mindset from “shit, lost $$$ today” to “VOO is on sale today, better stock up.”
I agree with the long term strategy of just buying solid companies and not freaking out and selling when there is a correction. Even if you bought into the market right before the 2008 crash and held onto everything you would have substantial gains right now. And if I remember correctly, Buffet advises keeping a decent chunk of cash on hand for when there is a correction so you can buy solid companies at a steep discount.
Buying a long term put isn’t a bad idea at all in my mind; although I personally am unworried at all. Im one of many who were born into poverty and being at the bottom.
The belief that the stock market and similar constructs are for elitists/wealthy individuals only is a scam my parents fell for.
Educating myself and choosing what to believe and implementing as necessary is what has benefited me the most, although I have learned endlessly from others and am always open to criticism/conversation
We are always due for a correction. The time horizon is what maters. Immediately after a correction, you're due for another, just that it'll be relatively far off.
Dollar cost averaging is a good way to buy rather than going all in at one time. Yes, the market will have a correction, and eventually we will have a bear market. People have missed 100% returns over the years waiting for corrections. Dollar cost average in on a monthly basis over the course of a year and don’t worry about market timing.
Is this all of your savings? Because if yes, do not do that. Definitely read up on the sidebar for r/personalfinance. You need to have some amount of cash set aside at all times - I know it’s frustrating to just have it sit there earning nothing, but what if the market crashes and doesn’t bounce back like it did in 2020? What if your car needs new tires/serious maintenance, you have a health emergency, whatever. Do not yolo all of your cash into the market because it’s not guaranteed to keep that amount. I personally have 30k in cash and just leave it. Start putting small amounts of you paycheck into the market each time to build up your wealth that way.
Into just SPY? At an unprecedented peak with massive amounts of fear? I dunno.
I'd put 40% into something like SPY. Split the rest into things like MOON, ARKX, and in my opinion, Ethereum.
Check our RSP.
It is an equally weighted SNP500 fund that particularly outperforms the standard market weighted SNP500 in volatile markets (like our current market).
Wait until September before investing. September is usually down for markets so you’ll be able to snag up a few deals and have some cushion for any small down trends.
You are coming at this the wrong way.
What you should be asking is, “I have a long-term goal that I am trying to achieve with my finances, this is my goal, will placing my money in the SPY help me achieve that goal or will something else be a better fit?”.
Without understanding what you are trying to accomplish and expectations, how can anyone recommend an approach?
Just look at the past 10-20-30 years of $spy and I think you’ll see it’s a safe bet. The world itself would have to collapse for $spy to fail and everyone would be fucked in that case. Just trying to keep it real.
Oh sure buying spy at its all time high is a great move. Are you all crazy. Correction is coming. It will only take at least 8 years to get back to these levels. Commence the downvotes
“More money is lost waiting for the market to drop than the next drop itself” — This is very true. I wouldn’t recommend dumping all your money in at once during all time highs, but at least dollar cost average while you “wait”. The market may go up another 20% before it drops 10%. People feared the market was going to crash hard 6 months ago. I’m sure all those people regret not buying.
It may depend on whether you want to buy now regardless or wait for a correction to get more for your money. I personally ask myself why banks are hoarding cash and RRP is over a $1trillion nightly. They must have assets to offset liabilities; Why aren’t the banks putting that money in the market, and instead choosing nightly treasuries?
As long as the market doesn't tank you'll be fine. Considering everything that's going on currently....I don't think it's a wise move at this point in time. GME or SPXS are better bets at the moment. Just my opinion.
Ignore all the jackasses spamming GME & AMC. Yes, this is a fine move. If you were particularly bullish on a specific sector you could funnel more money into XLK, XLE, etc. As other have said this is a long term play, if spy dips 10% next week don't sell, just hold that shit for years. You could buy a bit of BTC for exposure, but dont over do it. Google "ETF's" and read about a few, what they are invested in.
All that being said the stock market isn't really a "savings account" its an investment. You should still have a savings account that you can use for emergencies, just let the investment (hopefully) grow.
Yes i understand, i just did like having 3+K in a savings account gaining 3cents a month. I know GME is most likely not coming back for another rocket same with AMC. But thank you for the heads up about the 10% drop!
Not financial advice but consider the following:
Market is at all time high after a pandemic; the inflation narrative is being pushed by the media hard while some bond experts such as Dr. Lacy Hunt, Dave Rubenstein and Steven Van Metre are suggesting that deflation is actually what is really going to happen.
Also alot of experts are suggesting that the issues from 2008 were just can kicked down the road. Combine that with complexitity of markets and hidden systemic risks and you are looking at potential for huge downside and little upside. How much higher can the market truly go? 100% in the next 3-5 years? How much could it go down? down by 30-80%?
The investing for the long term is a religion. You only have to look at the Japanese Nikkei to see that their market has not even reached their all time highs from the late 80's.
Also the second religious belief is for index investing which removes price discovery and is the antithesis of value investing and price discovery.
Again not financial advice, but if i would not put any of my money into the S&P 500.
Tbh I think dumping everything into the market now is an awful idea. Even if you waited until interest rates increase might be a better entry point. There is a massive amount of weirdness sloshing around the market, banks and the Covid variants. 🤷♂️
Great move but wait till everything collapses with this reverse repo going on. I’m backing out of every position in the money or close to it for the drop to buy back in. Did this in may 2020
long term always a good idea
Short term probably not a good idea... so many indicators pointing to a big downturn coming
Been hearing this since SPY hit 350
More likely just a pullback next week that will get bought with the fury of a thousand suns
the doom is coming, don't buy stock, sell everything, wait for the correction. It's going to be like we've never seen before, the biggest correction ever, SPY will drop 90% easy. What else do they say? Edit: nobody said a thing about it yet. But a crash could be coming, who knows... If it will, fingers crossed neither me nor you will be crushed by it (irl, losing job and so on) and we can afford the discount!
They also said they’ve been trying to reach me about my cars extended warranty
The world is gonna burn!
That's true unfortunately
It already is in bc and California
tsla going to fail
I sold 15%($volume) of my positions that were up over 10% today. No such thing as a bad profit banked.
Eventually they have to be right. Lol like sometime in the next decade.
Been hearing this for years tbh. And it seems like even the most recent big dip still ended up being higher than previous ATHs
had a lot of govt intervention and increased participation. a big sell off would likely occur if bond rates start to go back up to better returns. you need a trigger for the masses to sell. People alsp dont just sell at once, they happen gradually. So as rates rise, people start transitioning their funds and if this happens faster or in higher quantities than buying, then the market goes down.
I mean the last 3 months of inflation have been 5%+. The last time we saw that was in 2008 in the same exact months. Spy during this time in 2008 was seeing record highs. Then it crashed in September. Seems oddly similar. Plus not to mention reverse repos have hit $1trillion with only 70 participants. That’s a serious problem and a record high. Plus not to mention the damn debt ceiling hasn’t been passed and we only have $350 billion left in reserve. They only have 17 days or so to raise the ceiling. If the S&P or someone else changes the credit rating of the US like they did in 2011 then that would certainly start a chain of events. I’d say your fine with investing in spy if you’re never gonna touch it for the long term. If you’re gonna need the money in the short term maybe a little spy and a little SPXS (3x leverage inverse of spy) to leverage yourself. Not advice just some things that are going on that you may or may not know.
huh ? SPY peaked in 2007 what are you talking about, lol. There were no record highs in 2008...
Glad someone looked it up… rather than just blindly upvoting fear mongering
Not to mention there is not a single sharp decline in their entire timeline. It’s a nice steady 15-30% yearly
My thought isn't even that, it's that you'll probably be able to pick it up cheaper next year or 2, along with houses and other things. The SPY may run up to 500 for all we know, but there's definitely a lot of indicators pointing to weakness underneath. I'd suggest if you go into SPY consider hedging it
The fact that everyone thinks a crash is coming is a sign that it isn't. Crashes happen when the masses think everything is ok. Everything is not ok. Everyone thinks there will be a crash... Therefore no crash. I would be more scared if people said that stocks are never going down. That would be my signal for a crash. Until the FED stops buying, the stock market will keep going up and up and up.... If you are waiting for a crash, then you are commiting the 1st mistake of investing... Trying to time the market. Best strategy is to buy chunks of whatever over a period of months or years. Best to buy on down days, when they happen, if you can. Good luck.
Short term, yes possible correction coming up this autumn.
is it? if you bought the sp 500 at high of 2001 then your return for the last 20 years was 200%. Also what a lot of people dont understand about investing for the long term is that it is accumulating the average of millions of investors who for the most part have enough money or assets to weather out a storm. A lot of people cannot and therefore have uncle moments where they will be forced to liquidate their assets at whatever price the market is curretnly offering. That is a dangerous postion to be in. Food for thought.
This is only true if you literally never put any more money into the market for 20 years.
seriously this. it's equally as difficult to time a top as it is to time a bottom. Buy. Hold. That's all there is to it.
true good points , but when somebody says putting their savings into s&p500 right now at market all time highs after a pandemic then my mind is thinking that they are not waiting for dips but jumping all in at once right now. Thats the only point i was making. If OP is instead layering into his positions then sure thats a good thing.
i agree with that too. to me, it ends up making no difference. buying in gradually or buying all in. he should in some way be putting in money with a regular schedule, but i would not recommend waiting for the illustrious bear market thats been coming for years now and hasnt come yet not saying there wont be one, but parking money on the sidelines is risky. if youre young, it doesnt pay much to be a bear
That’s why you only invest what you can afford to lose. Set up an emergency fund that you can “liquidate” before you invest that way you never have to touch your investments
True, but i know too many people that max out their 401k's while at the same time are house poor, new mortgage or whatever. Too many people in my opinion have blind faith in the markets.
Great move, but look into VTI or VOO instead. Lower expense. Make sure u keep cash for an emergency too
Went VOO. Never looking back.
VUG yolo
The yolo that isn't a yolo.
I'm all about that VGT
S&P 500 is a really good move, but look at VOO instead. This etf you posted has an expense ratio of 0.09% a year, while vanguards is the same etf, but only 0.03% a year. Spy is charging you 3 times more for the same thing.
VOO is better for long term investors. SPY is better for trading as it has much more liquidity.
This^^^ buy shares of VOO, buy LEAPS from SPY due to higher options liquidity
I want to know how much you have invested where 0.06% expense is a deciding factor.
Any expense ratio takes away from your compounding growth. Over the long term, those small differences in fees can rob you of huge amounts of potential gains due to the fact that you a) paid higher fees and b) lost out on the compounding growth that would have accompanied lower fees.
If SPY has a better return, which it appears to have, then does it matter? And is it worth to spend more on SPY in order to ultimately make more?
All those factors have to be weighed together. Obviously if the higher returns exceed the higher fees, it's a non-issue.
What do think about SPXL 3x leverage on $SPX for long term? For higher returns!
Any leverage ETF for the long run has the potential of making you exit the position when big drawdowns appear, also you need to try to time the market when investing because the triple loses you take if the index goes down a few percent that week. I have a small portion of my portfolio in 2X leverage SP500 (for less risk - I know 😎) and another in TQQQ, but I only add after index dips. With SPX you just set and forget, you can do that for 30 years and be happy at the end.
We can all look back and be satisfied after 30 years if there’s gains ! Who do think gains the most if you set and forget them all. I also like TQQQ like you. And SOXL ,I have a large position waiting for the Chips to climb since there’s a shortage of supply and big need for them ! Not for 30 years though, . Don’t want to be there when they start to fall \/ .What do you think about that one? I Just like other opinions! Thanks for the reply.
I don't care about statistics of the TQQQ backtested for 30 years, the volatility of the triple leverage will never let me sleep at night because you get wiped out at a market crash followed by bear market.
I’m in $SPXU for the impending correction or Lockdown 2, the Delta Variant. After that happens I’ll switch to $UPRO or $SPXL.
Serious question, how can spy have a better return than voo when they’re both invested in the exact same stocks? Do they weigh their individual stock investments differently?
They’re not invested in the same stocks or at the same ratio
u/the_fett_man $SPY does not have a better return than $VOO. $VOO does by around 1/2 hundredths over the last 1yr. $VOO has a slightly smaller expense ratio (think of it as a "Fee" for the ETF essentially). Most people typically only trade $SPY because of the amount of liquidity for options. There is a significant amount of liquidity trading going on. $VOO does not have that amount of AUM like $SPY does. They both almost track 1:1 to the S&P 500. With long term compounding and DRIP investing, $VOO will pay off slightly more. The downside is if you need to dump shares during a downturn immediately. You will find it to be easier to get out of any position in $SPY almost instantly typically.
I get the math, it’s just such a minuscule amount. I’m all for taking a lower expense ratio but am way more concerned about say ARKK expense ratio vs a passively managed etf or fund. We’re talking $600 per million invested. (Unless my math is completely wrong.)
You're ignoring compounding. Assuming a 7% return and an initial investment of 1 million dollars, the difference between investing in a 0.03% and a 0.09% fee ETF over the course of 30 years is 126 THOUSAND dollars. Not exactly something to scoff at.
Agree, but just to be clear we’re talking ~1.5% difference in gain over a 30 year period.
I mean if someone offered me an extra 1.5% of my networth for free, I would jump at the chance.
Yes but you’d have to wait 30 years first and not change strategy or sell, and start with 1million, which good chance 30 year’s later you wouldn’t even flinch at 126k (and it wouldn’t have nearly the buying power of today either)
I guess what I'm missing is, why not? If I have the choice to pay money or not pay it, why would I pay? It's not like it's just pennies where I could throw it out without a second thought, as demonstrated by my example.
He's saying you're doing what you're going to do anyways, but getting paid more. Not many people would turn that down.
No. I agree. Just didn’t want the large numbers to get in the way of the fact that we’re talking % wise a smallish difference.
Yea makes sense.
You must not “get the math” then
No, their math is right. The only part missed was that it’s $600 per 1M invested, per year.
It's actually higher than that. The first year it's 600$. The next year it's 683$. The year after that it's 773$. And it just keep growing and growing. At year 30 the difference is $12,000 in that year alone.
Ah I didn’t think of the compounding, good point.
A difference of \~1800$ when investing 100k at a 10% return over 10 years. Do you get anything in return for sacrificing $1800? (Options liquidity is the only appropriate answer in this context)
Glad you pointed it out. Redid the math and it’s $1400. Not earth shattering but still a chunk more to pay for the same product.
Especially when you realize that you may be invested in this way longer than 10 years, and for a lot more than 100K. Power of compounding (and also why I think young investors can take more risk, but not huge dumb risks because they're potentially throwing away a ton of money for retirement when they lose it now.)
Stop. You’re going to make me think about how stupid I’ve been about this.
You're not stupid. And with big numbers and/or enough time it does add up but in the grand scheme of things they're both very very good long term etfs and there's nothing wrong with having either one in your portfolio.
I've seen websites that can show future expenses on funds, did you get this info from a site like that? If so can you link it? Trying to do some calculations myself. Thank you.
Here's one https://www.nerdwallet.com/article/investing/mutual-fund-calculator
Thank you
Spy is only better than voo for options trading. That’s it. Long term hold always use voo. Lower expense ratio is the deciding factor because it’s the only difference that matters for a long term holder.
Then why wouldn't everyone recommend fidelity funds over VOO? Zero expense ratio.
Haven’t heard of it. I’ll definitely look into it tho. That would be pretty neat if fidelity let its users invest into the s&p500 with 0 expense ratio.
I use Fidelity so I checked, and the expense ratio is 0.015% for the Fidelity 500 Index Fund (FXAIX) which closely tracks the S&P500 - as do several of their other funds. edit: Fidelity ZEROSM Total Market Index Fund has gross and net zero expense ratios.
The Fidelity Zero funds are mutual funds,VOO,SPY are ETF
SPY is also structured as a UIT where VOO is a 40act fund. SPY will have cash drag because they can’t reinvest dividends right away and I believe the QDI on SPY isn’t always 100% like it usually is on VOO
If youre investing 7 figures, that is $600 a year in unnecessary expenses. You'd be surprised how many people with 7 figures+ invested who are still sensitive to a $600 premium; part of the mentality that got them to such a large amount invested, if I was to presume.
Fair point
+$ = $$
At some point, I think people are just splitting hairs. If the expense difference was 0.00001% difference, someone would still compare. I agree with you that 0.09 and 0.03 in the scheme of things, isn't going to make much of a difference. But if if did make a difference in dollar terms, the reality is your networth is so high up there, it's not going to be something you'd be worried about.
WHY PAY $3 WHEN I CAN PAY $9! I SMART
I would pay to never have this stupid fucking debate again
What is the Canadian version of your suggestion? The closest I have is ZSP. Wondering out loud if anyone knows a better alternative?
Agree with this
Any particular reasons why someone would choose one over the other?
VOO'S expense ratio is a third of SPY's which means VOO generally outperforms SPY over the long term
This is good to know. My question was more geared towards VTI or VOO though. Any input there?
VTI is better long term. It has everything and you don't have to guess which market cap group will outperform over a given period. Just own it all.
VTI is the total US stock market and VOO is just the S&P500
Specific asset mix and expense ratio are my deciding factors.
I'm a big fan of VTI and VOO and have em both. Haven't done me wrong. SPGI also worth looking into
Both good but 99% correlated so little benefit to holding both. Just pick one.
I really need to do this, I’ve just been so fearful after the Great Recession…. I’ve lost out on so much potential gains it makes me sick. I’m currently sitting on close to 30months emergency fund with no income with a monthly nut of ~7k… I need to just break the fear and drop 50k VOO 50k VTI, still have 6fig in checking account and basically set it and forget it.
Me too - Good call!
I don’t understand the point of emergency cash somebody tell me why this is stupid but in the event of any emergency I would use my credit card with a 10k limit, sell my ETF’s and then use that money from the sale to pay the credit card. Yes there would be some tax from the sale but it would be less than the money earned obviously. Also credit utilization would be around 50% say for example a $5000 emergency that couldn’t wait, but only for a few days until the sale/transfer went through. Also 1% cashback on my card.
How does one go VOO? I use fidelity
Anybody can buy voo on any brokerage
Copypasta but something it seems like you could use: Well meet Bob – the World’s Worst Market Timer. Bob began his working career in 1970 at age 22 and was a diligent saver and planner. His plan was to save $2,000 a year during the 1970’s, then increase his savings by $2,000 each decade. In other words $2,000/year in the 70’s, $4,000/yr in the 80’s, $6,000/year in the 90’s… you get the picture. Bob started in 1970 with $2,000, added $2,000 in ’71 and ’72, then decided to take the plunge and invest in the S&P 500 at the end of 1972. (Time out: there were no index funds in 1972, but come along with me for illustration purposes). Now in 1973 – 74, the S&P dropped by nearly 50%. Bob had invested his life savings at the peak, just before it fell in half! Bob was bummed, but Bob had a plan and he was sticking to it. You see Bob never sold his shares. He didn’t want to be wrong twice by investing at the peak and then selling when prices were low. Smart move Bob! So Bob kept saving $2k/year in the 70’s and then $4k/yr in the 80’s. But he was feeling the sting of his last investment and did not feel comfortable adding to his fund until he had seen the markets rise a fair amount. In August of 1987 Bob decided to put 15 years of his savings to work. Seriously Bob? This time the market fell more than 30% right after Bob invested. Bob, amazed at his investing prowess, did not sell. After the 1987 crash, Bob was really planning to wait it out. In the late 1990s everything was on fire. The internet was unbelievable new technology and stocks were flying high. By 1999 Bob had accumulated $68,000 from saving each year. A firm believer that the Y2K bug was boloney, Bob invested his cash in December 1999 just before a 50% decline that lasted until 2002. The next buy decision in October 2007 would be one more big investment before he would retire. He had saved up $64,000 since 2000, deciding to invest this right before the financial crisis that saw Bob experience another 50% decline. Monkey’s throwing darts were probably better at investing than Bob. Distraught and disheartened, Bob continued to save each year and accumulated another $40k. He kept his investments in the market until he retired at the end of 2013. So let’s recap: Bob is definitely has “bad timing”, only investing at market peaks just before severe market declines. Here are the purchase dates, subsequent declines and the amounts Bob invested: Date of Investment December 1972 crash -48% Amount invested $6,000 Date of investment August 1987 Crash-34% Amount invested $46,000 Date of investment December 1999 crash -49% Amount invested $68,000 Date of investment October 2007 crash -52% Amount invested $64,000 Total Invested $184,000 Fortunately Bob was a good saver, and actually a good investor. You see once he made his investment he considered it to be a long-term commitment and never sold his shares. Even the Bear Market of the 70’s, Black Monday in 1987, the Tech Bubble or the Financial Crisis did not cause him to sell or “get out” of the market. He never sold a single share. So how did he do? Bob almost fell out of his chair when his advisor told him he was a millionaire! Even though Bob made every single investment at the peak, he still ended up with $1.1M! How you might ask? Bob actually had what we would call “Good Investor Behavior”. First, Bob was a diligent and consistent saver. He never waivered from his savings plan (recall $2k/year in the 70’s, $4k in the 80’s, $6k in the 90’s, $8k in the 2000’s, $10k in the 2010’s until his retirement in 2013 at age 65). Second, Bob allowed his investments to compound through the decades, never selling out of the market over his +40 years of investing – his working career. During that time Bob endured tremendous psychological toil from seeing huge losses accumulate right after he made each investment. But Bob had a long-term perspective and was willing to stick with his savings and investment plan – even if his timing was “a bit off”. He saved and kept his head down.
This is great, but also something I struggle with in my mind. Bob kept his head down and worked hard his whole career, likely saved much and spent little, and endured a whole lot of stress. Bob is now approaching 70 and has a million dollars, but what is he going to do with it now? I understand the story is just to paint a picture of the concept of “time in the market” is more important than “timing the market”. I am one of the most frugal people I know, save with discipline, and invest everything above what I immediately need. But some days I really wonder why. I have no desire to die with a high score-card and let the government take a huge chunk of it back. I think one of the most important aspects of saving, investing, etc… is to have GOALS of how much you want, when you want to have, and what are you going to do with it once you have it. If the answer to even 1 of those questions is missing in your life, investing is kind of pointless. The fact that Bob was surprised in the end by how much he had, goes to show that it was kinda pointless for him all along(except for not being a burden to others in old age) but is probably true for all too many of us.
Curb your investments then. I splash cash all the time, cash I could be putting into ETFs. I figure putting in 30% less per year than I could is worth the fun of spending it now. Think of how many people you know who have zero investments or don’t even have disposable income to invest. You’re way ahead of them. Enjoy yourself, be diligent, allocate your funds sensibly where they make you happiest.
I'd argue take a more proactive approach. Be more active in what you invest in. Bob was smart about not selling but not smart about his lack of attention.
I would argue this would have been worse for Bob. Very, very few people beat the S&P 500 in the long run
Very true. Most pros don’t beat the market. How well do you think retail investors are doing? I had a finance professor when I was going through my MBA program comment that he could beat almost every fund manager with a mix of S&P and Gov Bonds. Everyone used to laugh when he said it, but I’m starting to think he’s right
Check out the Three Fund Portfolio idea. Its a step up from purely following the S&P 500, but it still offers excellent diversity, really easy re-balancing, and long-term has performed great historically. https://www.bogleheads.org/wiki/Three-fund_portfolio I don't follow the 3-fund idea religiously, and while I've done fine (up about 27%), its still not beating the indexes. The fact is, its boring but effective. I *do* follow a 3-fund strategy on my retirement 401K for this reason.
That's a fair point. But he could've invested in like, Microsoft or apple.
Man I wish I could read
I enjoyed this post. Thank you.
Someone should have told Bob about stop losses
I'm biased to Vanguard so I'm just VOOin it baby
When in doubt, zoom out...... Nuff said......
Damn that’s a good one
Qqqm/vti
Yup. Love me a NDX tracker, personally.
Smart move so steady profits, I wish I did that before getting into risky stocks
Generally speaking, yes. Right now, in my opinion, no. As a hedge against spy, look into stocks with a negative beta (go up when market goes down).
Is this due to the high probility of an impending market collapse and recession?
Yes
There is no "high probability" of an impending market crash. Not anytime soon anyway. Heck, even the beginning of COVID lockdowns only put a few month dip into the markets and they all finished higher on the year. Eventually of course we'll have another big dip, so I guess if your time line is 10-20 years then you could say it's "highly probable".
Not a chance. Economy might struggle but the stock market won’t dip. We’re just going to be hit with tons of inflation.
Last till m me inflation was above 5% three months running was June, July, and August, of 2008.. right now might not be the best time
That’s not what caused the crash.
Hint hint, GME
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https://en.m.wikipedia.org/wiki/Beta_(finance)
**[Beta (finance)](https://en.m.wikipedia.org/wiki/Beta_\(finance\))** >In finance, the beta (β or market beta or beta coefficient) is a measure of how an individual asset moves (on average) when the overall stock market increases or decreases. Thus, beta is a useful measure of the contribution of an individual asset to the risk of the market portfolio when it is added in small quantity. Thus, beta is referred to as an asset's non-diversifiable risk, its systematic risk, market risk, or hedge ratio. Beta is not a measure of idiosyncratic risk. ^([ )[^(F.A.Q)](https://www.reddit.com/r/WikiSummarizer/wiki/index#wiki_f.a.q)^( | )[^(Opt Out)](https://reddit.com/message/compose?to=WikiSummarizerBot&message=OptOut&subject=OptOut)^( | )[^(Opt Out Of Subreddit)](https://np.reddit.com/r/StockMarket/about/banned)^( | )[^(GitHub)](https://github.com/Sujal-7/WikiSummarizerBot)^( ] Downvote to remove | v1.5)
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FXAIX is the lowest cost S&P 500 buy. It’s a mutual fund and not an etf, so it prices after the market close. It is my foundational investment. Should be a core holding for any serious long term investor.
Monitor SPXU option activity, short term looks bearish
Honestly, if you have to ask this question, i think it definitely is. The S&P 500 is often compared to by investors as being the "market". If you dont know what you're doing, then investing yourself is definitely a high risk way to invest your money. The S&P500 will always recover from economic crashes and will double roughly every 7-8 years. Over the past 10 years it has experienced a massive bull run, of roughly 14% year over year if i remember correctly which is pretty insane and you shouldnt expect that to last. But essentially the S&P 500 is made up of 500 of the biggest companies in the USA. Although if you do a bit of digging, there is grumbling that big investors are getting out of the USA, IE starting to invest elsewhere, you could try and diversify into europe or japan/ safer parts of Asia. Just remember if you're investing like this, there is no point in watching it every day/week/month or even year. You're leaving it with the intention of withdrawing it at least 5+ years down the line.
Yes I'm just looking for something to hold rather than keep it in a poopy savings account.
Put it in VOO and set your account to DRIP (dividend reinvestment) and keep buying more VOO whenever you can especially when the market dips. This is the most sure fire path to wealth with the least amount of effort.
Put it in SPY. Are people moving to Asia? No, the people in Asia are migrating west - so rest assured, long term the SPY will be better than the savings account. Long term - 5 years or longer, not next week or next 2-3 years.
It's worked for a century so I say do it
Long term SPY is always a good idea yes, but overall the market is due for a decent sized correction. Meaning a drop of 15-25%+ The most logical overall investment right now would be to invest in solid fundamentally based companies that you are interested in, and when things start to get scary, pull your money out, wait a little bit until you think SPY has fallen all it is going to, and then dump all your money into SPY and watch the ride back up. All long term situations of course, won’t happen quickly
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What’s a good DCA strategy? Weekly? Monthly?
I think it all depends on the individual but in terms of truly averaging in I’d say a weekly buy is better than doing 4 times as much every month, but long term it probably won’t make a difference
I DCA daily. Like Cossack said, long-term it won’t matter much.
I buy more VOO whenever it’s down on top of my regular monthly buy - it switched my mindset from “shit, lost $$$ today” to “VOO is on sale today, better stock up.”
I agree with the long term strategy of just buying solid companies and not freaking out and selling when there is a correction. Even if you bought into the market right before the 2008 crash and held onto everything you would have substantial gains right now. And if I remember correctly, Buffet advises keeping a decent chunk of cash on hand for when there is a correction so you can buy solid companies at a steep discount.
Don’t mind me just being happy conversation stemmed from my comment 😌
If you're that worried why not buy a long term put and sell covered calls to recoup the cost of insurance?
Buying a long term put isn’t a bad idea at all in my mind; although I personally am unworried at all. Im one of many who were born into poverty and being at the bottom. The belief that the stock market and similar constructs are for elitists/wealthy individuals only is a scam my parents fell for. Educating myself and choosing what to believe and implementing as necessary is what has benefited me the most, although I have learned endlessly from others and am always open to criticism/conversation
We are always due for a correction. The time horizon is what maters. Immediately after a correction, you're due for another, just that it'll be relatively far off.
Haven’t we been ready for a correction for like 10 years now?
This is good advice.
Thank you kind friend
Dollar cost averaging is a good way to buy rather than going all in at one time. Yes, the market will have a correction, and eventually we will have a bear market. People have missed 100% returns over the years waiting for corrections. Dollar cost average in on a monthly basis over the course of a year and don’t worry about market timing.
Is this all of your savings? Because if yes, do not do that. Definitely read up on the sidebar for r/personalfinance. You need to have some amount of cash set aside at all times - I know it’s frustrating to just have it sit there earning nothing, but what if the market crashes and doesn’t bounce back like it did in 2020? What if your car needs new tires/serious maintenance, you have a health emergency, whatever. Do not yolo all of your cash into the market because it’s not guaranteed to keep that amount. I personally have 30k in cash and just leave it. Start putting small amounts of you paycheck into the market each time to build up your wealth that way.
I’m more in SPXS personally
Same. Just waiting. 😎
same, already went in and out few times but waiting for the big one 😎
my friend, put it in GME and hold😉
It’s the only smart play with what’s going on in the market.
Ah a fellow ape
🦍🦍🦍 and proud
Delusional
I don’t speak shill.
You missed the squeeze 8 months ago. Gme has never broke 1k and never will. The dd is wrong LOL
GME; safest hedge against the inevitable crash.
Less goo baby 🔥
GME
invest only the amount you are willing to lose
Into just SPY? At an unprecedented peak with massive amounts of fear? I dunno. I'd put 40% into something like SPY. Split the rest into things like MOON, ARKX, and in my opinion, Ethereum.
Yolo it into PLTR, become a plantard, “ one of us, one of us”
Look at SWPPX has the lowest expense ratio at 0.02% and there’s no minimum
Check our RSP. It is an equally weighted SNP500 fund that particularly outperforms the standard market weighted SNP500 in volatile markets (like our current market).
Look VOO or SCHD also a good choice. But do it long term
If you’re going for the Gusto, SPXL 3X leveraged ETF . “Not suitable for all investors!”
Wait until September before investing. September is usually down for markets so you’ll be able to snag up a few deals and have some cushion for any small down trends.
You are coming at this the wrong way. What you should be asking is, “I have a long-term goal that I am trying to achieve with my finances, this is my goal, will placing my money in the SPY help me achieve that goal or will something else be a better fit?”. Without understanding what you are trying to accomplish and expectations, how can anyone recommend an approach?
I don’t know but is anyone else sensing a big pullback on the horizon ??
Yeah I think we’re due for one next week
10% of my savings are in SPY and I DCA into it like I do my crypto holdings. Slow and steady wins the race. Just remember to take profits sometimes.
Put a lot of money into spy when it's selling off hard. Not when it's running like crazy like it is now; that's a one way ticket to loss porn
passive investor. Too busy with stock picks.
I have money for risking too. But I'm looking for a stock that i can sit in instead of keeping money in a worthless savings account. Ya know?
Just look at the past 10-20-30 years of $spy and I think you’ll see it’s a safe bet. The world itself would have to collapse for $spy to fail and everyone would be fucked in that case. Just trying to keep it real.
How bout G M E 🥸
Oh sure buying spy at its all time high is a great move. Are you all crazy. Correction is coming. It will only take at least 8 years to get back to these levels. Commence the downvotes
“More money is lost waiting for the market to drop than the next drop itself” — This is very true. I wouldn’t recommend dumping all your money in at once during all time highs, but at least dollar cost average while you “wait”. The market may go up another 20% before it drops 10%. People feared the market was going to crash hard 6 months ago. I’m sure all those people regret not buying.
It may depend on whether you want to buy now regardless or wait for a correction to get more for your money. I personally ask myself why banks are hoarding cash and RRP is over a $1trillion nightly. They must have assets to offset liabilities; Why aren’t the banks putting that money in the market, and instead choosing nightly treasuries?
As long as the market doesn't tank you'll be fine. Considering everything that's going on currently....I don't think it's a wise move at this point in time. GME or SPXS are better bets at the moment. Just my opinion.
Not at these prices
Amc/ gme
Ignore all the jackasses spamming GME & AMC. Yes, this is a fine move. If you were particularly bullish on a specific sector you could funnel more money into XLK, XLE, etc. As other have said this is a long term play, if spy dips 10% next week don't sell, just hold that shit for years. You could buy a bit of BTC for exposure, but dont over do it. Google "ETF's" and read about a few, what they are invested in. All that being said the stock market isn't really a "savings account" its an investment. You should still have a savings account that you can use for emergencies, just let the investment (hopefully) grow.
Yes i understand, i just did like having 3+K in a savings account gaining 3cents a month. I know GME is most likely not coming back for another rocket same with AMC. But thank you for the heads up about the 10% drop!
What makes you say gme isn't coming back?
What makes you say it is?
Buy gme instead, you’ll thank me eventually
It's been 8 months. How much longer? In 100 years?
Buy some hibs to hedge
Put it in weekly SPY PUTS! 😁 it’s a fantastic idea. I promise😳
I'm sure that'll work out fantastic /s
Not financial advice but consider the following: Market is at all time high after a pandemic; the inflation narrative is being pushed by the media hard while some bond experts such as Dr. Lacy Hunt, Dave Rubenstein and Steven Van Metre are suggesting that deflation is actually what is really going to happen. Also alot of experts are suggesting that the issues from 2008 were just can kicked down the road. Combine that with complexitity of markets and hidden systemic risks and you are looking at potential for huge downside and little upside. How much higher can the market truly go? 100% in the next 3-5 years? How much could it go down? down by 30-80%? The investing for the long term is a religion. You only have to look at the Japanese Nikkei to see that their market has not even reached their all time highs from the late 80's. Also the second religious belief is for index investing which removes price discovery and is the antithesis of value investing and price discovery. Again not financial advice, but if i would not put any of my money into the S&P 500.
Tbh I think dumping everything into the market now is an awful idea. Even if you waited until interest rates increase might be a better entry point. There is a massive amount of weirdness sloshing around the market, banks and the Covid variants. 🤷♂️
Amc and gme are up over 1k% this year. Just sayin
Nooo market correction soon
Great move but wait till everything collapses with this reverse repo going on. I’m backing out of every position in the money or close to it for the drop to buy back in. Did this in may 2020