If they're in VTSAX and losing a few mil, they have plenty of other mils to keep them company.
I'm sure they care about it, but the question they have to ask themselves is what would they do with it otherwise?
If not actively deploying capital to start businesses or actively investing in alternatives to indexing, then you can stick things in cash and hope inflation doesn't eat you alive, or invest in VTSAX and recognize that dips happen and just live your life and watch it rebound in a few months or years.
If this was money they needed tomorrow that would be a different story.
Exactly what coinbase said. If it’s VTSAX, I’ve already assumed 7% returns a year over 30 years. Doesn’t matter how the market is doing right now. It’s the ultimate peace of mind.
I understand there is no timing the market unless you have billions and a team of quants.
I just don’t think about it at all. If I personally invested in stocks, I would probably be stressed out since it’s a decision within my control, but there is a reason it’s called VTSAX and chill.
The problems arise when you think you can time the market. If you believe that the market is hyper efficient, heavily manipulated, and that your counterparties are institutions with billions and legions of quants, ofc the only choice is to invest in the US economy. You wouldn’t play poker when everyone else can see the card and deck and you can’t.
I guess you just need to understand, you cannot time the market.
Keep telling yourself that, if you are not prepared you will be bag holding. Just FYI in the next 10 years the world will move away from the dollar considerably. You will see persistent inflation. US can’t afford to pay 4% interest on federal debt. You will see lot of govt spending to support lower class adding to inflation. Dollar will get devalued US consumer will loose purchasing power. Welcome to the multi polar world.
Nope, I sold all of them. I didn’t put much money in stock so it’s ok even with -60%. Chinese stocks are influenced by the policy greatly which is quite uncertain. I don’t want to bet on that. Now I put my money in QQQ.
comments
I'm sure they care about it, but the question they have to ask themselves is what would they do with it otherwise?
If not actively deploying capital to start businesses or actively investing in alternatives to indexing, then you can stick things in cash and hope inflation doesn't eat you alive, or invest in VTSAX and recognize that dips happen and just live your life and watch it rebound in a few months or years.
If this was money they needed tomorrow that would be a different story.
I understand there is no timing the market unless you have billions and a team of quants.
I just don’t think about it at all. If I personally invested in stocks, I would probably be stressed out since it’s a decision within my control, but there is a reason it’s called VTSAX and chill.
The problems arise when you think you can time the market. If you believe that the market is hyper efficient, heavily manipulated, and that your counterparties are institutions with billions and legions of quants, ofc the only choice is to invest in the US economy. You wouldn’t play poker when everyone else can see the card and deck and you can’t.
I guess you just need to understand, you cannot time the market.