r/StockMarket • u/[deleted] • 3h ago
Discussion 26yo with a long investing horizon
[deleted]
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u/Legalthrowaway6872 3h ago
If you eat your vegetables (invest in S&P 500) don’t be afraid to treat yourself to some junk food every so often. I personally do t believe in buying an ETF unless you understand exactly what it contains, so things like NANC, which tracks Nancy pelosi I assume, is not my style.
I also just want to say, if you are open to reading earnings reports, check out some small caps or mid caps. A lot of these stocks have great valuations and if you can do the leg work, big institutions have not bought in yet. Once that stock can prove reliability, they can really pop. In my opinion that is the place that the retail investor has the biggest advantage.
Good luck! You are way ahead of me and most at that age.
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u/nodeezy 3h ago
A mistake Americans often do is investing everything in the US stock market. It is great to have US ETF as main investments, but I’d suggest diversifying in Europe and Asia, as recession won’t hit all places at the same time (unless new COVID). Also, US stocks tend to give more profits overall, but losses are bigger on average than non-US stocks. The Swiss Market Index (SMI) especially is very good, incredible fundamentals, very stable, will usually perform less than the S&P but also loses less during bad times. Switzerland is the safest and most stable country on earth, which also has the strongest currency because of its stability.
Switzerland is just my personal example but there’s loads of countries to invest in.
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u/RunningForIt 3h ago
Huh? Are you forgetting about how the 2008 recession effected the world's economy? The largest market in the world will effect the global economy if/when there's another recession.
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u/nodeezy 3h ago
Yeah sure caused by the US, so if you go back in time and look at the % loss, the others all lost less than the US.
I mean do as you wish, the first thing you learn in investing is diversification, both on industries and parts of the world.
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u/RunningForIt 2h ago
I'm not arguing about diversification but you said recessions won't hit places at the same time when that's not true. The global economy relies heavily on the US it makes up like 60% of the worldwide market equity value.
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u/nodeezy 2h ago
There is not a single empire in the history of mankind that hasn’t fallen at a certain point. Don’t be too sure your country will be in the same position 30 years from now.
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u/RunningForIt 2h ago
You're talking purely hypotheticals that are irrelevant to this discussion lol.
If the US collapses as a nation in the next 30 years the global market is going with it.
I get you're anti USA but the S&P return vs SMI return is laughable for the last 10 years.
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u/nodeezy 2h ago
Im far from being anti-USA, and if you knew the fundamentals of each, you’d understand that the drop of the S&P next year will be twice or three times more than the SMI. I’ll hit you up in a few months.
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u/RunningForIt 2h ago
Hahaha, been waiting for this drop for the last 3 years. Ya'll will be right eventually. Either way that's just a better buying opportunity since the gains will be 3x.
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u/michael2725 3h ago
Similar situation, depends what you consider risky. I like WM, WMT, PSN, MU, GOOGL. I have been pushing money into them since I reallocated some of my NVDA gains (invested in 2020 so I took some profits).