Comment by hdgvhicv
1 day ago
The ponzu scheme of SPY is great until it stops. 10% of America’s payroll gets lumped into it each month and generational wisdom is you get a 10% ROI despite the economy growing 2%.
At some point that will collapse, and it won’t be pretty.
> The ponzu scheme of SPY is great until it stops
TINA (there is no alternative).
Inflation will eat your cash.
Bonds hardly generate (real) returns unless you want to take big risks with duration.
Real estate is over inflated.
Gold is speculative.
Crypto is...not real.
What's left?
Valuation of companies tied to their real current profits! If a company is unprofitable now, it doesn't make sense and is wholly wrong that its stock is trading 1000x more than other companies which actually turn a profit.
The difference from public ownership to public gambling is huge in its impact to society, especially when the markets crashes.
So rather that someone auto-investing a slice of their paycheck into a s&p fund in their 401k, they should instead learn how to evaluate company financials so they can pick winners from a non tax advantaged account?
This is a losing strategy for the large majority, and it's been demonstrated repeatedly that even professional investors can't beat the market especially after considering fees.
https://www.investopedia.com/articles/investing/030916/buffe...