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Non-crypto investing

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Thread replies: 20
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File: vanguard.jpg (50KB, 569x398px) Image search: [Google]
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Poorfag here looking to diversify outside of crypto. I did the vanguard questionnaire and found that a growth-based, heavily weighted stock option is best suited for my goals. I've also heard about the stock market being in a bubble and is due for a crash. Should I wait until this happens or am I better off just investing as early as possible? I'm also looking into robinhood but buying stocks at this time seems like it's begging for heavy bags.
>>
fuck stocks. you really wanna be excited over 5% annual grown pajeet?
>>
If you don't have a lot of money and just put a little towards the fund every time you make money, it doesn't matter if the market crashes because your small contributions will continue and you'll be buying stocks cheap for a big rebound

>>3140764
what will the annualized growth of your stupid bitbeans be in 2030 since inception
I bet you think it will be a positive value
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>what is a 401k
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Look up QE, the schiller PE relative to historical levels, projections of forward assumed RoRs, maybe even some big company balance sheets then ask again if you want to invest right now
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>>3140750
ya just pick vanguard 2050 and dump as much money into it as possible for the next 30 years

also buy some ethereum with a small amount for speculation
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>>3140923
Good points, but we have to ask ourselves if the market gives a shit. I don't think people even remember why this rally began (it was Trump getting elected). Now people just keep throwing money in, and no one cares why.
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>>3140750
Buy now.
If the market dips buy more.
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>>3140863

>implying im holding bitbeans

>implying i'm holding anything thru 2030

kys
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Just be ready for an equity and bond crash
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>>3140985
And when he can't make those promises materialize - which the market is realizingn - you'll see weakness in equities which is starting to happen

I think another rate rise this year could cause a pullback but we'll see
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File: ms.jpg (17KB, 500x375px) Image search: [Google]
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>>3140923
The Fed is planning to unload QE assets over the next 30 years, not all at once. Most RoR projections for the next 10-20 years show a 5% real return as opposed to 6-7% from the Boomer years, no big deal. Growth is expected to be lower but gains will still be made.
Big companies have used historically low interest rates to secure ridiculously low interest loans to buy back stock which usually results in greater return to investors. Balance sheets are reflecting these loans.
The Schiller PE is based upon previous 10 years PE, which currently includes 2007 when things went to shit. If the market stays flat for the next year you'll see the PE go down reflecting that fact.
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>>3141787
http://awealthofcommonsense.com/2017/03/return-expectations-going-forward/

I wonder how smug shkreli looks in prison
>>
>>3140764
You can still make money off stocks. I'm up almost 30% in the last month. Not as good as crypto but still nothing to sneeze at.
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>>3141787
>The Fed is planning to unload QE assets over the next 30 years
Just interested to know where this info comes from, my guy. A lot those treasuries they hold don't even have maturities above 5 years from now.
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>>3141865
>(((Ritholtz)))

And Shkreli wont spend a day in prison. Convicted of crimes with no damages and thus no victims, c'mon.
>>
>>3140923
The PE compared to historical levels isn't the whole story. Historical levels average a 15 PE. That is like saying 15/1. If you flip that around to 1/15 and divide it you get the S&P earnings yield of 6.66%. Historically the S&P earnings yield is close to the BBB bond rate. Currently, the BBB bond rate is 3.47% and the S&P earnings yield 4.1% using that metric the S&P is historically cheap. If you take the current PE ratio and multiply it by 2018 earnings estimates the S&P would have a price target of 3360 by the end of next year. Which is about 40% more than what it is now. The factors that could lower that is either higher interest rates, lower earnings or some sort of black swan that throws the world into recession.

https://fred.stlouisfed.org/series/BAMLC0A4CBBBEY

http://www.multpl.com
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What kind of stocks should one invest in during bear years
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>>3142391
Whether we see an upcoming bear year will depend how much delay will be encountered by Trump, in terms of getting infrastructure spending and tax reform through. It's looking less and less likely that those things are going to happen any time soon. Which is a problem because so much of that potential has been priced into the market already. So what happens now?

Another factor is whether or not the Fed will be looking to increase interest rates (through the the Fed Funds Rate), soon. They're finding it difficult due to lower than expected wage inflation, which is actually a little concerning to see happen despite all of the Quantitative Easing that's happened. Where has all that money been going? (spoilers: into the stock market).

If it interest rates increase, it impacts the "Risk Free Rate" (just one of many things), but this plays a significant role in many different types of valuations of assets.

Equity start to appear more overvalued. Debt may start to look more attractive than equity.

If money starts to flow out, and volatility finally returns to the markets, aim for companies who have solid and consistent earnings. But with all this Passive Investing that happens nowadays, it's hard to say if markets will respond in an expected manner. Perhaps there won't even be much response to political uncertainty and rising interest rates.
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wish they'd go ahead and make a /coin/ board so we could get back to discussing more prudent strategies
Thread posts: 20
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