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A comment on The rise and fall of Cathie Wood, controversial Wall Street investor. Parent comment

Re:The rise and fall of Cathie Wood, controversial Wall Stre... by sdze on Monday May 30, 2022 @02:51AM (#31556133)
I like John Bogles „reversion to the mean“ analogy. What goes up, comes down.

Look at past performance of Mutual Funds. If they peaked and you buy it, you can almost be 100% sure, that it will fall.

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Re:The rise and fall of Cathie Wood, controversial Wall Stre... by pharmakom on Monday May 30, 2022 @06:10AM (#31557318)
If you buy at the peak you will lose money by definition…
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Re:The rise and fall of Cathie Wood, controversial Wall Stre... by projektfu on Monday May 30, 2022 @07:12AM (#31557775)
Better put, since a peak can't be predicted, is that a fund with outsize performance last year will likely underperform this year.

I remember Janus' ads running a victory lap about one fund with a >100% return in 2000, only to have ads talking about how to stay strong and deal with "uncertainty" or something after the crash.

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