You have to take that into consideration in your planning. Don't go full prepper but do diversify your holdings. That's just basic anyway.
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There is a bubble every decade. When you are saving over 40 years or more a single year dip every 10 years is fine.
Don't sell in the dip, buy in the dip.
The underlying asset bubble based on unequal exchange has never been popped and there is zero cushioning for it. This is not 1976 nor 2008
Buy high, sell low π
Ah, yes, the WallStreetBets approach.
Don't sell in the dip, buy in the dip.
What would happen if everyone did this? Can everyone do this, even theoretically?
This is effectively impossible. Time in the market beats trying to time the market because it is hard to identify the dip until you have already exited it.
If everyone bought the dip, the dip would end. Stock prices are only loosely tied to reality. They are more strongly tied to the perception that a stock's price will increase. So, if people started pouring money into stocks (or other assets) the price of those stocks would naturally rise as they become more scarce and sellers demand a higher price for them. Assuming the reasons for the dip remain, it would just result in the inflation of another bubble.
Take a look back at the whole GameStop (GME) rollercoster. Large investors expected the stock to crater and began taking short positions. Retail investors saw the dip this was causing and bought the stock in droves, forcing the price up beyond anything it had any business being. Eventually, that bubble popped and the stock has settled to a more reasonable (if still higher) level.
The whole system is built on winners and losers. It's very frustrating to me.
An economy is really just a way to distribute finite resources in a world with infinite wants. Even the most egalitarian of systems is going to require deciding who gets something and who doesn't (winner and losers). It's perfectly valid to be frustrated by being on the "doesn't" end of that equation. And we (US and other Western Democracies) could certainly do a lot more to shift some of the resources away from the few who are hording a lot of them, even without a radical "tear the system down" approach. The difficulty is the political will to do so.
Unfortunately, mustering political will for a collective good, which may come with some individual losses can be a tough sell. Especially when large parts of a population are comfortable. Not only do you have to convince people that the collective good is an overall good for them, you also have to convince them that the individual losses either won't effect them or will be mitigated by the upsides of the collective good. And given peoples' tendency to over emphasize the short term risks over the long term risks, this can be especially hard. But, that doesn't mean you should give up, just that you need to sharpen your arguments and find ways to convince more people that things can be better for them, if they are willing to take that step.
The essential factor is that the imperialist countries, ie the US, EU, etc, leverage their financial and millitary domination of the global south to expropriate large sums of wealth. These spoils are used to bribe the working class into passivity. Imperialism, however, is self-defeating, and the rate of profit is lowering while there aren't really new markets to plunder anymore. This causes crisis.
It's not particularly outlandish to orient the economy around collectivized production and distribution based on need, rather than profit. Socialist countries already exist, and achieve good results compared to peer countries. They require working class organization, which is a difficult but possible process.
Answering the can everyone do this question, the dip usually implies that everyone cannot do this.
The dip implies a drop in demand that is causing prices to dip.
Just as I suspected. The economic system is built on some people losing and some people winning.
The scary part of this one is that previously, we had administrations that, while still being right-of-center (yes ML, I know), had at least enough sense to prop things up well enough to recover.
I donβt have faith that the fascist goons will take any steps to properly protect anything (regardless of whether its the ideal system or not) and just let everything fall apart.
Considering all the damage just seems to be blatant wrecker shit trump is doing as βrevengeβ for who knows what, probably having his pedo time taken away by the imperial core (and under his watch too) I think he wants this place to burn and cooking us all is his sick revenge fetish at this point.
Fucking prick
The problem is that they kept propping things up and mitigating losses from those with wealth, i.e. protecting boomers.
Recessions hurt, but they are historically a natural method of wealth redistribution. In a recession, people with stuff lose much more than the people without stuff, and then on the way back out the people without stuff now have a better chance to capture some of that wealth.
Same for war. Historically speaking.
Kind of reminds me of how our 100 year long strategy of putting out all forest fires as soon as the first spark erupts, has lead to large buildups of brush and growth, that under normal circumstances would have been burnt back, sparing the large trees and forest as A whole⦠but now provides so much fuel, that any fire now is not only an unstoppable force, it also kills any and every thing leaving the forests irrecoverable.
If you live long enough, you've been through a number of bubbles. For me thats:
- Black Monday (1987)
- Dot com bubble (2000) which also bled into 9/11 economics impacts
- Great Recession (2008)
- COVID (2020)
The next bubble will just be another. Economy will slow, value of most assets will drop. Jobs will be lost, homes foreclosed on...and then the recovery will begin again. We'll look in the mirror shocked we survived it then in a few years we'll completely forget about it and be terrified of the next bubble.
So, prepare by living within you means, take care of yourself and your loved ones, and just be ready to weather the next storm. We'll get through that one too.
Covid wasn't a "bubble".
Or if it was, it was all the over investment in entertainment and productivity tools. In which case, that popped around 2023 when everything got cancelled and RTO layoffs started.
While the rich get richer and more people get poorer.
I don't expect to live long enough to retire. Any hope that I'd eventually be able to retire and enjoy life for a change went out the window in 2008 when the housing bubble popped.
There's a lot of fun stuff coming soon, stick around if possible.
same here and my doctor confirmed it not too long ago; it's a little bit freeing knowing that i don't have to put any effort into planning from my elderly years.
In Canada at least you can have the funds pulled from the market and put in cash hold until you are comfortable with the market for RRSP/RESP.
Some banks will try to tell you you cannot do this or will charge you $100/month to keep it in cash. If they do, go to another institution and get it moved there. Many credit unions offer the same accounts with zero charges for holding cash.
Iβm about 6ish years away from retirement (the goal is Dec 31 2031). Iβve been doing a lot of work in stock markets as a result of preparing for it. The thing with the stock market is you only lose money when you sell. If a bubble pops, but you donβt sell and you keep it in there, you will eventually make your money back and recover. Diversifying your portfolio also helps, if the housing bubble pops, the entertainment sector will likely grow because people need escapism. The AI bubble is huge right now and when that pops it will be worse than the dot com bubble, even though that bubble popped, websites are still around and that industry is larger today than it has ever been. Like websites AI is here to stay, and will eventually become larger than it is right now. Itβs just time, wait it out and it will normalize.
I mean, if you have stock in like blockbuster you're losing money there too.
Not great
GOOD luck
I really hate how we all lived through a whole dark age and three supposed end-of-days before 30. Can't we get a break?
I guess This is my fault team. I wished for 2012 to not be the end. Stupid monkey paw!