This seems like the first step of what will eventually lead to hyper inflation.

  • UnderpantsWeevil@lemmy.world
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    2 days ago

    would like your take on the Buffett Index topping 200% for the first time (total stock market value vs. GDP). It was around 130% in 1929 and 2008.

    I mean, Berkshire itself is trading at 15 p/e. So if you take the index seriously, it’s a good place to shelter your money when the storm hits.

    But Buffet was a value investor and we’re in a growth investor economy. I wouldn’t say the index is a good indicator of a pending crash any more than it was three years ago.

    Considering the disproportionate amount of stocks in AI, and, so far, no clear path to investors seeing a return, I’m scared shitless.

    Bulls make money

    Bears make money

    Pigs get slaughtered

    Diversify your portfolio, understand why you think an investment has a bright future (and when that future has dimmed), don’t try to time the market, and don’t beat yourself up if you’re wrong.

    I don’t see anything in this market to be afraid of. I see a plethora of opportunities to generate healthy returns long term.

    • shalafi@lemmy.world
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      2 days ago

      I have no investments. Cashed out what little I had over the past two years of unemployment.

      But you have a point in looking to opportunities. Always ways to profit from change and crisis. I’m more worried about the overall health of our individual investments. People usually aren’t hustling their money around. Most simply contribute to their Roth or IRA or whatever and let the market play out over decades, just as we were taught.

      • UnderpantsWeevil@lemmy.world
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        2 days ago

        Most simply contribute to their Roth or IRA or whatever and let the market play out over decades, just as we were taught.

        Long term, it has been a smart play. Very hard to find a historical milestone where a $1 invested in Year X is worth less than year X+10, much less X+40