Investing Strategies. What is your move?
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Owen Lucas
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Aside from the retirement fund, invest in another separate fund to diversify away from the tech in the targeted one. Won’t hurt to invest more anyway even if it’s a little. Lots of talk about tech eventually crashing like the dot com bubble.
Think about this, 70% of the companies in San Francisco and silicon valley are losing money. Facebook is down 46% and Netflix 50%, more to fall.
Companies focused on commodities might do better than tech in the next years. I’m still researching this angle so I can’t recommend anything other than Exxon (hehe) but maybe some BITOGs may provide some insight to offset a tech crash.
I trade leveraged and inverse ETFs depending if there’s good or bad news.
This is NOT advice because they are very, very risky…..
Definately not for the poser Robinhood‘ers trading their stimulus or tax return checks.
I’ve had a few nice days due to the volatility lately.
Edit: Another nice day with QQQ down big.
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@Pew - Not sure if you have specific questions? I wouldn't really change my tune from my previous comment. Some (perhaps) interesting observations from the 1 pagers you included above:
- Expense ratio of the target fund of ~0.26% is not all that unreasonable, but higher than the Fidelity Index fund (0.02%). I'm assuming that the other fess (mgmt fee, misc. fee and other fee) are additive so you are pushing around 0.50% in fees on the target fund. Again not astronomical compared to some plans/options but higher than the index option.
- Risk profile of the target fund is pretty similar to the index fund. Makes sense because it looks like the target fund is just under 60% invested in an index to the S&P (in other words extremely aligned to your option 2). The target fund, IMO, isn't doing anything crazy - good or bad - for you compared to the index option right now.
- Just to reemphasize it (sorry if I'm beating you over the head with this point) - the upper right corner of the target fund has a pictorial of the allocation of stocks and bonds - and the general wind down over time that is planned to take place to lower risk and volatility as you lead up to retirement (2060).
For myself I'm a believer in indexing in the S&P and basically setting it and forgetting it, especially when considering a fairly long window to stay invested.
- Expense ratio of the target fund of ~0.26% is not all that unreasonable, but higher than the Fidelity Index fund (0.02%). I'm assuming that the other fess (mgmt fee, misc. fee and other fee) are additive so you are pushing around 0.50% in fees on the target fund. Again not astronomical compared to some plans/options but higher than the index option.
- Risk profile of the target fund is pretty similar to the index fund. Makes sense because it looks like the target fund is just under 60% invested in an index to the S&P (in other words extremely aligned to your option 2). The target fund, IMO, isn't doing anything crazy - good or bad - for you compared to the index option right now.
- Just to reemphasize it (sorry if I'm beating you over the head with this point) - the upper right corner of the target fund has a pictorial of the allocation of stocks and bonds - and the general wind down over time that is planned to take place to lower risk and volatility as you lead up to retirement (2060).
For myself I'm a believer in indexing in the S&P and basically setting it and forgetting it, especially when considering a fairly long window to stay invested.
I don't know bro...not picking up what you're putting down with this ramble. Put money in a cheap total stock market index fund, don't overthink it or tinker, and in 30 years you have millions of dollars. Beating the market is a fool's errand and simply matching the market over time is more than enough - the Cliffsnotes version. There really isn't much more to it than that. ITOT FTW!
Ok watch your money disappear , it's a fools errand to be invested right at this moment in history . I sold it all off 4 weeks ago . Umm, I preserved 25% of the money I had invested , which literally is a drop in the bucket to me to be honest. What did the NASDAQ lose today 4%? What did it lose Friday 3%? Monday was a fluke because of the Mush hoopla . What about the consecutive four weeks of losses before this week. I've been in the market for 30 years, I'm no fool.
You mean like getting rich? Or my favorite, being financially secure later in life?
I say this because I used to be broke and homeless.
So let me get this straight. The market peaks at the end of 2021 and it's been all downhill from there. Four weeks ago after significant market losses, you sold, materializing your losses, and sure while it depends on the price at which you purchased, if you sold anything that you bought in the last year you just bought high and sold low. But, but, but you prevented further losses! No, you made your losses real instead of paper losses. I hope you at least got to tax loss harvest. Can the market still go down? Sure, but who cares. Now is a time to buy and not sell.
I'm 25 years away from retirement and the next 2-5 years will mean nothing. I've psyched for a bear market as an opportunity to buy at a discount and while I have no idea if you're a fool or not, there are 100+ years of research that says what you did last week, assuming you don't require liquidity in the near future, was the wrong move. Even if because of basis it was the right move this time, that is akin to timing the market and thinking because that ONE time it worked you can time the market and win all the time. Billionaire money managers can't time and beat the market over the long term so what makes you think you or average Joe can do it?
Time in the market vs timing the market is so well-established a doctrine based on the research that it's hard to believe people still try and time anything. So much so that if you claim you've beaten the market over the past 30 years, knowing nothing about you other than that statement, I call you a liar. Furthermore, if you didn't beat the market over the past 30 years, then why tinker at all? Certainly not because it's effective and so then it really just becomes a form of speculation/gambling.
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It's an attempt to try and save people...from themselves.
Bragging in an investment thread. Nice.
A challenge? Karma.
A challenge? Karma.
A classic. It’s been on my bookshelf for nearly 30 years.
I asked you privately.
But you’re forcing me to make this public.
Knock off the personal insults and bragging.
This thread is about investing, not an opportunity to criticize others or brag about yourself.
Moving on.
Let’s stick to taking about investment strategies.
Personal attacks, politics, and bragging have no place on BITOG.
People who can’t behave will be given an opportunity to reconsider their ability to follow forum rules.
Rules that are not up for debate.
Rules to which we all agreed.
Following an agreement that one has made is a matter of personal integrity.
Let’s stick to taking about investment strategies.
Personal attacks, politics, and bragging have no place on BITOG.
People who can’t behave will be given an opportunity to reconsider their ability to follow forum rules.
Rules that are not up for debate.
Rules to which we all agreed.
Following an agreement that one has made is a matter of personal integrity.
I always believed that Silver is a good bet, relatively cheap to get into. When i lived in South Africa 44 years ago a KRUGER RAND was $138 !!, I bought Diamonds easy to move around but not very profitable. I have a good Friend Roger who gets $40K a month from his investment, he buys every kind of older firearms, they will go to his children and if he does it before death they will not be part of his estate
My move is to just keep on collecting my dividends.
Question: Is The Intelligent Investor by Benjamin Graham still relevant in an era of index and target funds? Quick look at reviews on Amazon indicate it's not only old but possibly out of date--I'll take that criticism with a grain of salt, but the question still remains: is it as relevant today as it was 30 years ago, if one is not looking to be a day trader?
I think it is.
Books like this are education, not training in how to make money in this market. They grant perspective.
Since the book was written, mutual funds have proliferated, but so have active traders, and so has information.
Tools for analysis and information that couldn’t have been imagined when the book was written are now, quite literally, in average investor‘s pockets.
To sift through that flood of information (and hyperbole, bombast, and misinformation) requires perspective.
Perspective gained through books like ”The Intelligent Investor”.
I think it is relevant today. The most current version ends every chapter with added commentary that attempts to both summarize Graham's main points but also apply these points to modern times. You'd be surprised how well his ideas have held up over time. I believe the most recent edition was 2006 - well after the invention index funds in the mid 1970's.
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