If you were a lawyer, people you know would ask u your legal advice. If you were a doctor, people you know would ask for medical advice. But you are a trader so what do you say when asked for investment advice?
In the past I've generally said:
1 Stay away from stocks - buy index ETF funds. Indexing is the only viable long term strategy.
2 Don't buy now - things will likely get a lot worse.
3 Don't panic sell now, you'll likely regret it in a few years.
I got tons of questions from people whether they should buy C at $5, and GE at $18, BAC, etc. I always told people to stay away from individual stocks and I feel good about that. But I wish I had told everyone to sell everything at Dow 11k cause once it broke 10k it just crashed from there.
So now here are my new talking points:
1 Don't pick individual stocks. Stick with an index ETFs. Indexing is the only viable long term strategy.
2 Move more into bonds as you get older.
3 Look at the CAPE ratio to determine whether you want to invest above or below fair value. And the market can remain above or below fair value for decades.
In the past I've generally said:
1 Stay away from stocks - buy index ETF funds. Indexing is the only viable long term strategy.
2 Don't buy now - things will likely get a lot worse.
3 Don't panic sell now, you'll likely regret it in a few years.
I got tons of questions from people whether they should buy C at $5, and GE at $18, BAC, etc. I always told people to stay away from individual stocks and I feel good about that. But I wish I had told everyone to sell everything at Dow 11k cause once it broke 10k it just crashed from there.
So now here are my new talking points:
1 Don't pick individual stocks. Stick with an index ETFs. Indexing is the only viable long term strategy.
2 Move more into bonds as you get older.
3 Look at the CAPE ratio to determine whether you want to invest above or below fair value. And the market can remain above or below fair value for decades.
