Why Your Index Fund Won’t Protect You From Tech’s Collapse

[XiXiPee]

You buy what also doesnt matter during bad terms correlation for all them is +1

 

[Reborn]

Need dca to make the small profit or can do nothing still earn?

I would say nothing is 100% in investing. I cannot say there will 100% be profits.

But it was proven over decades, those who bought index funds over the long term, made profits.

While those who picked their own stocks, lost money over the long term.

What u mean by dca? U mean discounted cash flow analysis or what?

The reason we buy into index fund is to let the index fund do its own work. And hope for profits in the long term. Because the stocks in the index are dynamic, A lousy company gets dumped from the list even if it was once great enough to get into it.

If I were to do DCA, I might as well select stocks indivudually. And trust me, most of us would suck at it and lose money.

Even the so called professionals from like insurance companies dealing in ILP actually suck at it.

Edit, your DCA probably mean dollar cost averaging?

This one I dunno how to answer you.

Whether its better to buy over time, or just one shot?

I dunno which would perform better.

But I guess if you buy when the market is down whether dca or in one shot, you would have better profits over the long term. (for index fund)

 

[Seah.tt]

when goldman and jp motgan ask u sell, buy

 

[XuishX]

when goldman and jp motgan ask u sell, buy

Don’t like that leh , they ask you to sell you buy, later they nothing to buy how?

 

[Joe Maya]

EDMW all financial guru, don't think they need this advice.

 

[CyberTan]

The S&P 500 is dominated by big tech, which was good news on the way up. Not so much on the way down.

Investors who thought their S&P 500 Index fund is diversified are getting a rude shock.

The benchmark stock index fell for a seventh straight week, its longest losing streak since 2001, but its drop would be far less dramatic if it wasn’t so heavily weighted to mega-cap tech stocks like Apple Inc., Microsoft Corp., Amazon.com Inc., Alphabet Inc. and Meta Platforms Inc.

Mai Kia! For folks like me have 30 years of time horizon. Of course most boomer here may have only 10 year time horizon, then it’s not feasible to buy indexes

 

[elevate]

The S&P 500 is dominated by big tech, which was good news on the way up. Not so much on the way down.

Investors who thought their S&P 500 Index fund is diversified are getting a rude shock.

The benchmark stock index fell for a seventh straight week, its longest losing streak since 2001, but its drop would be far less dramatic if it wasn’t so heavily weighted to mega-cap tech stocks like Apple Inc., Microsoft Corp., Amazon.com Inc., Alphabet Inc. and Meta Platforms Inc.

Yes yes park in ur moms pocket best

 

[Johnpierpontmorgan]

when goldman and jp motgan ask u sell, buy

Sell to me 20 cents on the dollar

 

[fearhimwhofearsnothing]

Hope crash more.

Boomers and crypto bros need to wake the **** up.

 

[thisisnotme1212]

knn alls the useless ceos makes mois loses sho muchs monnies
whos goings pays for mois losses?
priests asks sundars, marks, jacks ands satya tos calls mois immediatelys!

 

[opteron]

Why main stream media has taken a sudden turn hah?

cos monkeypox pandemic incoming...

 

[eno_lc]

Put in milo tins safest… oh wait

 

[mazatsushi]

Need dca to make the small profit or can do nothing still earn?

Take the worst case scenario.

You invested into Nikkei 225 right at the market peak back into 1990.

The lump sum investment until today still deep in the red.

DCA investing would have turned a very modest profit starting around 2012, even before Abenomics pushed up stock prices.

 

[Reborn]

Mai Kia! For folks like me have 30 years of time horizon. Of course most boomer here may have only 10 year time horizon, then it’s not feasible to buy indexes

I think if you bought a index during the dot com bust, you would have made good profits 20 years later.

 

[CyberTan]

I think if you bought a index during the dot com bust, you would have made good profits 20 years later.

Unfortunately, I can’t. But we will see how the stock market goes. Within 2 years time we may have another recession

 

[danguard]

Take the worst case scenario.

You invested into Nikkei 225 right at the market peak back into 1990.

The lump sum investment until today still deep in the red.

DCA investing would have turned a very modest profit starting around 2012, even before Abenomics pushed up stock prices.

DCA is the best

 

[Reborn]

Unfortunately, I can’t. But we will see how the stock market goes. Within 2 years time we may have another recession

I think most people cannot tahan and will panic once they see their stocks and index going down and will sell quickly. Not too many will hold long I guess. We dun have the stomache for it.

Maybe better buy sg bonds for guaranteed returns.

 

[LoaGong12]

what I mean is usually index fund, there should (at least) still be some small profits in the long term. Even though it might go down in the short term from when you bought it.

In fact, most edmwers should be buying index fund or singapore bonds and nothing else. Because most of us are actually clueless when it comes to investing.

Index funds yes; sg bonds no. Long term performance is crap la

 

[GBC]

The S&P 500 is dominated by big tech, which was good news on the way up. Not so much on the way down.

Investors who thought their S&P 500 Index fund is diversified are getting a rude shock.

The benchmark stock index fell for a seventh straight week, its longest losing streak since 2001, but its drop would be far less dramatic if it wasn’t so heavily weighted to mega-cap tech stocks like Apple Inc., Microsoft Corp., Amazon.com Inc., Alphabet Inc. and Meta Platforms Inc.

Regardless whether the index funds goes to the moon or not, the fund managers managing these funds will still get their management fees..

 

[Reborn]

Index funds yes; sg bonds no. Long term performance is crap la

sg bonds guaranteed returns la. But won't beat inflation. So you are probably right.

But bonds really still good for people who are really clueless. Better to make some money from it, then let the money stay in the bank and earn the current meagre interest. Unless you cannot do so for liquidity reasons.