Re:How to invest without knowing the future
by Workaccount2 on Friday November 12, 2021 @10:36AM
(#29200282)
This is what really bothers me.
Everyone is being forced to put their money into an extremely overvalued market. What is a crash going to look like when main street is sitting on assets just like wall street is? Is my stock portfolio FDIC insured against a run on the market?
I hate that my new savings account is shares in multibillion dollar corporations that have never made a penny of profit. And when they crash they'll tear down all the solid companies too. It's a damned if you do, damned if you don't situation.
Re:How to invest without knowing the future
by kgin on Friday November 12, 2021 @11:25AM
(#29200997)
You can invest in companies that make money though. There are lots of them chugging along just fine and providing returns, dividends even. The high flying meme stocks get majority of the attention, but they’re not the majority of the market.
It’s true they’ll get pulled down in a bear markets, but not nearly as much as meme stocks.
Debt is a promissory note to the future, at which point the debt will be worth far less than it is now.
The unfortunate consequence of being heavy assets though is that you are then exposed if the current overconfidence recedes and markets crash, so perhaps consider whether the companies you invest in rely on this free money environment (growth companies don't tend to do well with high interest rates, which tend to follow high inflation). Personally I'd avoid US assets at this moment because of this - indexes are very heavily skewed to tech right now, even VWRL is 3% Apple alone at this point and > 50% US.