For four decades, patient savers able to grit their teeth through bubbles, crashes and geopolitical upheaval won the money game. But the formula of building a nest egg by rebalancing a standard mix of stocks and bonds isn’t going to work nearly as well as it has.

  • Valdair@kbin.socialOP
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    1 year ago

    Thoughts? I have to admit I’ve been nervous about this for a while now, with “once in a generation” events happening on a seemingly yearly basis, I started saving for retirement in 2019 and it seems like things have essentially traded sideways since then - my accounts are barely worth more than the money I’ve put in to them. The article is quite gloomy.

    • centof@lemm.ee
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      1 year ago

      You are looking at it the wrong way, Because the market has traded mostly sideways for a while that means that the market is underpriced compared to what it should be. That is when you should be more willing to invest. I know it seems counterintuitive. This article explains the concept better than I can.

      Since ~2019, the SP500 has gone up 45%. That is the equivalent of a 8.5% compound interest rate or 11% simple interest rate per year. If you’re portfolio accounts are under performing that by a big margin than you might want to switch Funds and/or account providers.

      There are always gloomy articles and headlines meant to convince you to sell. Because they want to buy your stocks on the cheap.