Quote:
Originally Posted by ithos
They do exist. Ever heard of Michael Bury? Also Joe Kennedy Sr was famous for timing the market before the Great Depression. It usually coincides during peaks of euphoria or pessimism.
But most who attempt it do fail.
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Did you put 401K money into an SP500 fund while working?
if so you were a systemic investor, your system consisted of buying the market without regard to price or risk level.
Did you rebalance your IRA with your financial advisor at any time?
You are an infrequent market timer, changing your investment risk profile.
Did you move out of stocks into bonds or cash and then back to stocks at any time?
If so, you are an infrequent market timer.
Should you be in the stock market at all?
Yes, as the overall market has a positive return expectancy, depending upon your personal unique situation
Why?
Because the US labor force contributes a hell of a lot of systemic buying into their 401K monthly, regardless of valuation, causing the market general level of rising valuation. The US based type of public company ownership capitalism has one goal for every company: become a monopoly and have the stock market value your company in the trillions now. .
Will it continue?
Yes, until the RMD outflows exceeds the employment contributions. . ie, technology efficiency from reducing employees continually reduces 401K systemic market buying and Social Security inbound payments, increasing the risk to your retirement income.
Will the market continue to work as it has in the past?
It will work until it doesn't, there will be signs prior to the market stop functioning, but they will be subtle and most will miss the signs.
Will many make money until then?
Yes, because of the above reasons. .
GL2U
Good Luck to Us!