It’s not. Your initial paragraph only makes sense if everything happens in the same point in time. When this bubble bursts it will start a market crash that spans multiple years, not a one time thing that you have to buy into today or miss it.
I think this is a misunderstanding. I am talking about “extra money”, that you should not have available to but a potential dip. Instead you ignore the ups and downs but invest each month (or whatever your rhythm is). The key point here is that you cannot time the market.
You’re trying to beat the couch by supposedly in an informed way selling and buying from the S&P500. The couch just holds its money in the S&P500 and does nothing. Only about 10% of players outperform the couch.
It’s made with real data from the last ~ 100 years but only shows you the trend of the price, not the years.
My investment strategy over the last two decades was to buy something when its down, forget about it (and so don’t get frustrated when it sunk even deeper after buying), stumble over the investment > 5 years later and be happy about the accumulated money. Surprisingly it worked quiet well so far…
I invest a few tens of euros a month, and I actively try to buy low. So far I’ve managed to buy quite a few dips, and in ~15 months i’ve gained 14.84%. The total sum of money i’ve invested is not much, but it has been consistent
Sure, but how am I supposed to compare someone’s personal 14% then? The number does not tell us anything. Even if OP made a fortune - he was just lucky then.
If you are already invested, than you do not have spare money to buy a dip. If you do have spare money, your investment strategy is questionable.
2 rules everybody should know:
Huh? You invest x% of your income each month. You don’t have next month’s money today, so nothing questionable about it.
If the market crashes, you keep buying each month, so you profit when it goes back up.
Sorry I don’t really understand. Isn’t that what I am saying?
It’s not. Your initial paragraph only makes sense if everything happens in the same point in time. When this bubble bursts it will start a market crash that spans multiple years, not a one time thing that you have to buy into today or miss it.
I think this is a misunderstanding. I am talking about “extra money”, that you should not have available to but a potential dip. Instead you ignore the ups and downs but invest each month (or whatever your rhythm is). The key point here is that you cannot time the market.
Someone made a game out of this:
https://beatthecouch.com/
You’re trying to beat the couch by supposedly in an informed way selling and buying from the S&P500. The couch just holds its money in the S&P500 and does nothing. Only about 10% of players outperform the couch.
It’s made with real data from the last ~ 100 years but only shows you the trend of the price, not the years.
My investment strategy over the last two decades was to buy something when its down, forget about it (and so don’t get frustrated when it sunk even deeper after buying), stumble over the investment > 5 years later and be happy about the accumulated money. Surprisingly it worked quiet well so far…
I invest a few tens of euros a month, and I actively try to buy low. So far I’ve managed to buy quite a few dips, and in ~15 months i’ve gained 14.84%. The total sum of money i’ve invested is not much, but it has been consistent
The MSCI World made 28.49 in the last 15 months
If you invested 100% of the money 15 months ago, not when you invested every month for 15 months.
Sure, but how am I supposed to compare someone’s personal 14% then? The number does not tell us anything. Even if OP made a fortune - he was just lucky then.
I don’t want to invest in a global fund, I invest based on my own values