Either way I don’t care.
Having a widget that reports S&P500, Dow Jones and NASDAQ composites everyday on my laptop screen, I have seen up and down for the past few weeks and of course a lot of downs during the bear market last month. I have a huge portfolio in stock simulator to test out the power of buy and hold, just as what Warren Buffett does. Do I log in to check my portfolios? No and not even once after I invested in them. I will only log in to see them a year later and I have a lot of good faith that it will have a positive return. That is the beauty of AVERAGE.
While many people associate risk with stock market, stock market is a place where you can save your money and earn returns. Saving money in bank is the 100% way of losing money because the inflation rate is higher than your FD rate. So wake up people and see where is the risk.
Most of us cannot get rich playing with stocks because we don’t have a huge pool of money to start. I see stock market as a place for investments and not a place to make money. It is more like a place to put your money from losing its value. No one asks you to trade like those in Wall Streets, they have a totally different agendas than us. No one asks you to go into option trading where you can get 1600% return in 3 months but also losing all your capital if you are not careful. Just put your extra cash into index fund and wait for at least 3 or 4 years. Let the power of average and compounded interest grow your money.
Being an ignorant and hiring a CFA to solve your financial problem isn’t wise. We all need to learn to manage our own money. I know some of you will say that I only play with stock simulator. In fact I am testing the theory for a year and July next year, I will have real money in the US market. By investing SGD100 every month and holding it long term, I am a millionaire by age of 55 and this is a foolproof way. I have never even mention about the CPF I have with the goverment. Hard to believe? Just do a check for US market for the past 50 years. It has never fails you. So can your FD do this?
