Comment by SwellJoe
9 hours ago
Which, again, benefits the wealthy and well-informed and well-connected.
The suckers who have their retirement savings in some kind of index fund because all the experts have been saying, "Buy index ETFs and forget about it" for decades are gonna get fleeced, and the wealthiest get wealthier.
What to do then, if "Boogleheads" are wrong?
I suppose everyone reading this thread counts as "well-informed" then, right? All I have to do is move my 401k into the bond-heavy fund right now and then back into the stock-heavy one when everything craters is what I'm hearing. It's what you're doing, right?
I'm informed enough to see what they're doing and why, but I'm not informed enough to know how to prevent them from wrecking the economy for normal folks while enriching themselves. I don't think information alone can solve the problem for the majority of people. Retirement accounts aren't often easy to change, non-retirement accounts have tax consequences, timing the market as a normal retail investor is risky.
I don't really have advice. If I were directly holding an index that tracks the Nasdaq 100, I would get out of it, and take the tax hit. But, I suspect the impact and risk will cascade outward. Nvidia has exploded in price based on actual revenue (though I suspect it will be temporary, and have to come back to earth in time). SpaceX is entirely fantasy land. It doesn't have revenue to justify anything like the price they're launching the IPO, and when indexes are forced to buy it, everyone holding those indexes provides exit liquidity for the same scammers who've been hyping it.
If you are subject to capital gains taxes, this would likely be a bad idea? (Though I have no clue how American 401k work in this regard.)
401ks are tax exempt so there would be no tax for switching investments.
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You are giving up equity premium for the time till everything settles. You will also not know when that is. It's going to be more like a long term ticking bomb that may take years to detonate.
Years? The way people are talking in this thread it's all an AI exit scam, which shouldn't take years to play out. It's a popping bubble, remember?
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