アマチュア投資家 commented on a stock · Nov 1, 2024 06:55

About your investment attitude.

$S&P 500 Index (.SPX.US)$ I don't think it's a significant adjustment, but it's natural to expect it to fall. Since the RSP is settled daily, I can only think that it dropped at this timing.

Leveraged ETFs in volatile sectors such as semiconductors have blatantly underperformed. A comparison with ETFs without leverage since the beginning of the year would immediately reveal this. Leveraged ETFs have a confirmed losing element from the point they keep paying unfavorable costs, so they should never be chosen as a means of asset formation. Because of its structural flaws, relying on trend lines and similar factors is not advisable.

There are people who write that institutional investors like ~ are posting, but those institutions have funds that are incomparable to yours, execute far more trades daily than you will in your lifetime, pay huge fees to brokerage firms in return for market information, and utilize the latest technology and excellent minds to carry out trades. Do you seriously think you can beat them?

However, even outstanding fund managers gradually fall behind and drop out of the market as time passes. Index investment constantly captures the average of such market struggles. Moreover, at a low cost. That's why even beginners can leverage time to their advantage. The longer the period, the more noticeable the effect.

Based on these facts, it might be good to reconsider your investment attitude. How much actual cost are you paying for the products you are buying, and how much will it inflate in the future? What is the basis for you to believe that you can outsmart the market (winning means that)?

When you realize your profits, additional taxes will be incurred. Can you find opportunities in products where costs are further added on top of engaging in an unfavorable battle?

Probably by reading a decent book and avoiding blindly trusting dubious influencers (probably around 99 out of 100) and information from such bulletin boards, just by stopping and taking full responsibility for your investments (it's a typical way to console each other with painful and convenient opinions) can significantly improve performance and make each day more enjoyable.

However, this is strictly a discussion of "planned asset formation," and does not apply at all to those who approach it as a way to strike it rich through gambling, so I think that area should be left free. It seems foolish to go to the extent of borrowing money. Even I found myself challenging various stocks during the coronavirus crisis, experiencing ups and downs, and somehow increasing my assets. However, looking back, I am amazed at the amount of fees and taxes I have paid.

There are cases where elderly traders with substantial assets become a topic of discussion, but simply working and continuing index investments diligently would likely have allowed one to accumulate a huge amount of assets. Especially now that index funds have been incorporated into the pension system, assets can be accumulated more easily.

I hope to spend my limited life meaningfully.

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