Just a bit about myself: Ive been active with the markets since the early 00s. ive never blow up my account and am in the green.
the things present in almost every major bubble and burst are:
1) bias . ignoring risk.
2) overzealousness . oversizing your position.
3) complacency. e.g markets always go up.
All of these are becoming more prevalent today…mainly the ETFs.
If youre going to go all in in the SPY, make sure you know the real reason – youre betting on the US economy to beat out the rest. thats it.
past performance is not an indicator of the future…
lastly, the only way you profit is by selling to someone higher. even with dividends, this is from profits which requires inflow of cash from outside the market.
the investor greats, think about who benefits from people just blindly buying into the market and holding.
chamath the asshole, even this guy sold a bunch of people on just buying 1% of their networth into a bet. Yes risk wise to the individual its nothing, but with a reach as wide as he has, this secures his exit on w.e investment he was peddling. its no different from convincing the masses to give you a dollar.
tldr:
do not get complacent with anything you do in the market. ensure your risk. appropriate to what you bring in.
Leave a Reply