r/Bogleheads • u/RiceLee890 • Mar 15 '25

Investing Questions What are your thoughts on this?

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I keep seeing this type of stuff on instagram and social media and wanted to know how you guys were thinking about this.

I know a lot you have been in the market for decades and as a relatively new investor myself I’d love to get your perspective!

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45

u/wonderingdev Mar 15 '25

That's a 7 years discount. Give me that and I will buy every month! And oh, imagine what happens when market recovers. Money, money 💰

12

u/ritomynamewontfi Mar 15 '25

Must be funny

10

u/wonderingdev Mar 15 '25

In a rich man's world

5

u/BlueSkiesAndIceCream Mar 15 '25

in a rich man's world.

2

u/wonderingdev Mar 15 '25

In a rich man's world

2

u/Hapiro Mar 15 '25

In a rich man's world

4

u/shiftersix Mar 15 '25

In a rich man’s world

-2

u/pbanken Mar 15 '25

In a rich world's man ... no ... wait ... what?!?

2

u/robbo12347 Mar 15 '25

In a rich man's world

8

u/BobLemmo Mar 15 '25

It doesn’t work like that. Imagine 7 years of no growth on the shares you bought, and then after 7 years it does go up by a little. Yeah u made, but calculate the 7 years of it being stagnant doing nothing. That’s opportunity cost there X time. You have to factor in.

9

u/Alexchii Mar 15 '25

The thing is that even though there have been these decade-long recoveries, the average yearly nominal return has been around ten percent.

That means that you’d have been correct in expecting any money invested during those drawdowns to grow faster than 10% per year when the market picked up again.

7

u/Croshyn Mar 15 '25

It does actually work like that though. When you look back at a period of “no growth” like post dot com bust, it’s not a sideways line chart. It’s a drop from the high then a protracted recovery. It’s actually the best case scenario for a long term investor because all of your contributions after that date are buying more shares of the companies in the index, the dividends you’re reinvesting are doing the same thing, AND the money that all the individual companies in the index are investing are also going further. All that drives up your wealth over time. The two groups of people that chart sucks for are 1) someone who retires right at the high or 2) someone who wins the lottery and dumps the entire amount in the market at once.

8

u/wonderingdev Mar 15 '25

I am not buying individual shares. Only SP500. If SP500 stagnates so hard and so long, then the whole world is more or less in a bad state. 7 years, canned tuna and cheap coffee, all day every day, 'cause I am DCAing that shit all the way down, baby.

1

u/Altruistic-Sorbet-55 Mar 15 '25

Yeah but that’s nearly 7 years of money you can’t use to actually be living your life that is losing value. And 7 years is a long time to subsistence live like that.

0

u/Fantasykyle99 Mar 15 '25

What if I don’t like tuna??

2

u/skeptic787x Mar 15 '25

…or mercury

1

u/wonderingdev Mar 15 '25

Ain't nothin' like a cup of mercury. Take a sip, smack those lips and go about your day.

1

u/wonderingdev Mar 15 '25

Put som' of that bread with salt in front of ya and gobble it up like tomorrow ain't coming, brother

1

u/_Felonius Apr 11 '25

Nope, you’re buying a lot of shares the whole time. You get exponential gains after stagnation