alt Hacker NewsStocks and money should be boring for most people. I'm not a financial adviser and this isn't financial advice but I believe no one with a net worth less than $2m should ever buy an individual stock. Invest in a target date retirement fund for your 401k. Same for Roth Ira. If you have more money to invest after that, invest in an index that aligns with you values (for example I invest in an ESG index for environmental, social, and governance, ie no weapons or drugs). I've kept my money boring for over ten years and my boring investments have over tripled in value. I consider it a point of pride that I don't know what the DOW is at or how much NVIDIA is trading at right now.
It always boggles my mind when someone who is middle to maybe upper middle class tries to time the market or buys/sells stocks in reaction to random news like this. At best you're going to be up maybe 50% on this trade, and you're going to pay commission to your broker, and may even need to pay taxes. At worst you're going to be down a lot and still pay the broker.
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On the contrary: People with a low net worth have very few opportunities to scratch and claw their way out of their holes in this global feudal system. They are the ones who need to be able to make high-risk, high-reward investments.
A conservative 10% return on a 2 million dollar investment is a very nice 200 000. A conservative 10% return on a 20 000 dollar investment is just 2000.
If you're not born rich in this world, there are but a few doors that are open to you to try to improve your station in life. Hard work will never help you out of the hole. Not even dangerous work. Nor will an education. At least with high risk investment you have a fair chance, and at worst you loose your savings and are back where you started. You're not going to lose your life or your limbs.
It’s because you just lived through a 10 year period of the best growth for passive, and there is a tremendous amount of marketing online for passive.
I don’t disagree with your basic idea, but not being able to articulate alternatives so that you know when they make sense is going to hurt you.
We are possibly seeing a major failure mode for passive for the first time.