Loading ...Buy, Hold & GFC 2.0
Wait for the next Great Financial Crisis, buy some hot sectors when “it’s the end of the freakin’ financial world, dude”, live your life for the next 7 – 10 years and
don’t bother to spend any time looking at charts, financial markets, etc., then sell.
The only caution I would make is I suspect ETFs and ETNs could get wiped out entirely in the next Great Financial Crisis & also partly be blamed
for it. That way, “passive investing” would effectively be criminalized, which only leaves “active investment” and the fees for Wall Street insiders to
get rich on.
“I suspect ETFs and ETNs could get wiped out entirely”
Why do you believe ETFs are less safe than mutual funds, over which few people ever ascribed solvency risk? Why are the risks higher in SPY than a SPX tracking mutual fund?
ETNs, yes of course.
Leveraged ETFs? UVXY is down 99.9% off its highs. It still among the most actively watched and traded!!!
Thinly traded ETFs …. might be different if they get no bid.
Not “believe” but “suspect”, there is a big difference in meaning between the two words. Search zerohedge for the doom sayers re ETFs & ETNs.
No more reasons that the one I gave and because I think the next financial crisis will be worse than the last (2007-2008).
You might want to do a little investigation into what is happening with the increase in passive investing. These articles from Northman trader speaks a bit to it:
https://northmantrader.com/2017/11/28/magic-levitation-2/
https://northmantrader.com/2017/11/22/the-silence-of-the-bears-2/
I have read and reread your post multiple times, and still have no idea exactly what you are advocating that we do and when we should do it. I have a feeling that you are saying something important, but for the life of me I’m not exactly sure it is. Can you translate? Thanks.
I don’t advocate anyone do anything, my post was intended as a suggestion, nothing more.
All I’m saying is if you buy the right thing at the right time and sit on it long term, you can make enormous returns, as can be seen from the returns in the above classes post-2008.