Is S&P 500 returns good enough to go all in on right now? Or should someone start on popular stocks such as APPL, or SBUX. I want to invest around 200 grand from my cash savings
For the last 10 years, my portfolio has been a blend of SPX and QQQ. During the next 20-30% drawdown, I’m going to switch from the indices to individual stocks, preferably diving into big tech stocks assuming they dropped much more than the indices. Tech stocks will rebound much more fiercely than the indices on the upside. Back-test this strategy using previous downturns, such as 2022. This is definitely an index killing strategy. If I’d switched from index funds to the Magnificent 7 in 2022, I’d have captured a 20-30% drawdown, followed up with a doubling or tripling of my money in the following few years which is significantly more than if I’d had just held the index.
Of course, this is market timing and not perfect. I suppose the best strategy would be to shift to cash before a market rout. I’ve never been able to time a market top. But, I’ve been pretty good at timing close to a bottom. Something about the pain associated with losing money I suppose. Just when I think I can’t handle it anymore, it turns around lol.
How can you get compound interest on your S&P 500 investments without cashing out and reinvesting? Because you dont get paid the interest unless you sell… Obviously you could reinvest dividends but otherwise in 30 years youre just selling the %increase on the stocks uouve bought over time… Is my understanding correct?
21 comments
You are the weakest link…..Goodbye
i mean… putting all of your money into the S$p 500 isnt putting all of your eggs in one basket. The s&p 500 is 500 baskets
Bank
Bank!
Is S&P 500 returns good enough to go all in on right now? Or should someone start on popular stocks such as APPL, or SBUX. I want to invest around 200 grand from my cash savings
Bank!
Thank you and bank
Bank.
Ah yes, BANK
I am a human bank for banking.
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Bank!
For the last 10 years, my portfolio has been a blend of SPX and QQQ. During the next 20-30% drawdown, I’m going to switch from the indices to individual stocks, preferably diving into big tech stocks assuming they dropped much more than the indices. Tech stocks will rebound much more fiercely than the indices on the upside. Back-test this strategy using previous downturns, such as 2022. This is definitely an index killing strategy. If I’d switched from index funds to the Magnificent 7 in 2022, I’d have captured a 20-30% drawdown, followed up with a doubling or tripling of my money in the following few years which is significantly more than if I’d had just held the index.
Of course, this is market timing and not perfect. I suppose the best strategy would be to shift to cash before a market rout. I’ve never been able to time a market top. But, I’ve been pretty good at timing close to a bottom. Something about the pain associated with losing money I suppose. Just when I think I can’t handle it anymore, it turns around lol.
Superb video clearly and simply explaining what many people probably didn’t know.
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Bank😉
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How can you get compound interest on your S&P 500 investments without cashing out and reinvesting? Because you dont get paid the interest unless you sell… Obviously you could reinvest dividends but otherwise in 30 years youre just selling the %increase on the stocks uouve bought over time… Is my understanding correct?
Bank
Bank
Bank