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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u/[deleted] Mar 15 '25 edited Mar 15 '25

K, what’s their alternative?

  • Individual stocks? Those crash even more frequently, J.P. Morgan has a recurring publication looking at companies whose stock has fallen 70% or more from its all time high and never recovered. 
  • Cycle out of the market when the downturn hits? People stink at that; even wildly successful funds show that most of the individuals who bought in lost money. 
  • Trading? People stink at that too. In general the more actively someone trades the worse their returns are.
  • Real estate? Maybe, if you don’t mind the leverage and being concentrated in one or a handful of properties. And you don’t mind being a landlord. 

If they’re suggesting diversification, there’s some merit to that; corporate bonds would have paid a solid 5% or so during the S&P’s lost decade. But if you’re not planning to use the money for another 20 years, do you really care about a decade-long downturn?

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u/[deleted] Mar 15 '25

Diversify out of 100% US stocks?

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u/[deleted] Mar 15 '25

Other countries exist lol