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  • reza800p_368

    Member
    September 8, 2023 at 7:52 am

    Quote from DOCDAWG

    It doesn’t account for extreme ‘left tail’ events, which can wipe you out totally. That’s one of the biggest problems. There is a recency bias in any market – since things have done well in the past, they will continue…This is simply not historically true.

    Things rise and things fall – usually in epic fashions. And, those who are left either exit the markets completely or are so beaten up by the process that it changes their strategy entirely.

    This is probably happening in sectors of commercial real estate in large cities as we type this by the way. But, for now, stocks seem to be chugging along.

    Time will tell.

    Most retirement plans are in the form of stocks. If the stock market crashes permanently, most Americans will lose their retirement and the government has to step in and pay them. So it makes more sense for the government to protect stock market in the first place. 
    I strongly believe that the fed is overprotective of the stock market in mid and long term. Short term crashes happen all the time but the government steps in when they happen and correct them within 1-2 years. 
    Now if you think that the whole US economy will collapse, that is a different story. In that scenario, no investment will be immune.