The market has never been higher, so it has no where to go but down. Actually…that’s wrong. And it’s always been wrong.
We’ve covered that “buying the dip” is a sub-optimal strategy for purchasing stocks. But would it work for Bitcoin?
Manias and bubbles share the same traits, and it’s because they’re caused by the same flaw: our human brains
Like birds chirping at the rising sun, investors tweet “buy the dip!” at the first hint of the stock market dropping. While it makes sense at first blush, this is a losing investing strategy. Let’s discuss why.
Rebalancing your portfolio decreases your portfolio risk *and* often increases your long-term returns
Your FI number—or financial independence number—details how much money you need to successfully retire. Or under the right circumstances, how much money you need to retire early.
Current 1-year stock market returns look amazing. Who would choose any alternative investing strategy when their current method has granted them 40%, 50%, or higher 1-year returns? We need to zoom out.
Take your gold-plated jewelry to the pawn shop, and dump your portfolio into silver dollars. You don’t want to miss this opportunity.
Surely that’s a typo…ergodicity!? No, it’s right! Ergodicity is a powerful concept in economic theory, investing, and personal finance.
For most of us, a 401(k) is our main approach to saving for retirement. The concept is easy—stash away money now and use it later. But there are alternatives to 401(k) accounts…and for good reason!