Re:When Everyone’s a Genius: A Few Thoughts on Speculation
by jdmoreira on Thursday February 25, 2021 @03:52PM
(#26268138)
That’s great and all. S&P 500 is a great passive investment. Just keep buying every month whatever the price for long enough and you will most likely hit 10% a year on average.
The problem is that you could lose money for 10 years. 1970-80.
Mindless buying S&P 500 is great but you might want to do better. Most people will do worse if they try to beat the index but some people will do 20% a year for as long as they keep buying good businesses at good prices.
Hope the treasury yields moving up don’t wreck you, if yields move N%, then bond values move (N*years remaining)% down. Disregard if you buy individual bonds and hold until redemption.