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Originally Posted by RoadtoPro
What is happening to the market? And is it normal? I can’t help but feeling I picked a terrible time to lump sum 4 digits into it (got in at all time highs). And I just started.
My logic was that time in the market beats timing the market and no one has a crystal ball. Money is easy to make through pokering anyways.
If you bought the S&P 500 at the peak in 2000 you would have had a 12.5 year break even stretch (ignoring dividends). With the Nasdaq it would have been more like 16 years.
Hell, from the peak in 1929 to the beginning of 1985 the S&P 500 was breakeven. That's over 55 years. Of course dividends were more important back then so I'm sure the breakeven stretch was actually much less than that but still it shows how important it is to not pay too much for investments. That's why Warren Buffett's company has been sitting on $128 billion in cash. It's also why, despite being the largest investor in Coca Cola (KO) he hasn't bought a share of it in the last 25 years.
BTW, Japan's stock index (Nikkei) hit it's high back in 1989 at 38,916. It is currently at 17,125.
Quote:
Originally Posted by RoadtoPro
Dream Crusher, I’m sure it’s very standard advice but I definitely understand the merits to DCA now. And it only took a few weeks to wrap my head around why.
You guys are geniuses.
Dollar Cost Averaging is very important especially for passive investing where you don't know the true value of what you are buying. We expect the market will most likely go up over time but there can be a lot of bumps along the way. DCA helps protect you from that variance.
Quote:
Originally Posted by RoadtoPro
Got it. But is this pandemic really top 5 worst in history? Or are there other factors influencing the sudden collapse.
The stock market was due for a 15 to 20% correction even without the pandemic. It had made quite a run in 2019 and to start 2020 and was quite expensive. One could argue that the bull market of the last decade was primarily a result of the Federal Reserve cutting interest rates (along with quantitative easing) and can't imagine there will be much more rate cutting now that they've slashed interest rates all the way to zero.
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Originally Posted by sixsevenoff
Thanks for the advice everyone. What exactly do you mean by be careful with bitcoin - rickroll? I'm confused on that. If I buy bitcoin, load it on Ignition, and then cash out, don't I get the $ amount of what that bitcoin was worth? I have no knowledge of bitcoin beyond how to buy it and transfer it to a wallet.
Transfers take time and bitcoin prices can move fast. It could actually help move in your favor..ie you transfer $500 and it suddenly becomes $700.
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Originally Posted by sixsevenoff
With that being said, I don't think I'm gonna be playing online anytime soon. I'm not in the right head space. I lost all of my methods of income because of this bullshit. A company was supposed to interview me today, and then ghosted me. No other companies are responding; I'm probably going to be unemployed beyond graduation. I have enough money to survive about a year, maybe a little more, but very uncomfortable situation. This would also mean I'd primarily be tapping into my poker banrkoll, and to see that go to $0 would be devastating to a point that I don't know if I could handle that. I'm scared. I know this is going to sound like whining and that my situation isn't unique, but I'm pretty beat. I don't know what I'm gonna do with myself.
This year is a tough time to graduate. Maybe U Michigan career services is giving advice, or will help when job hiring begins again. In the mean time, I suppose the only thing you can do now is increase your skills either to make yourself more employable in the future or to get better at poker (ie play online).
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Originally Posted by prairiebreeze
Odds of cancellation has to be no worse than even money?
UFC is postponing the 3 events prior to Tony vs Khabib. They say Tony vs Khabib is still on, just not in the US. I figured they would likely move it to Saudia Arabia or UAE. Who knows if it will still happen though. It's possible all travel could be shut down then.