[quote=ltsddd][quote=Coronita]People who lived through the dot bomb days know how badly things can get. [/quote]
You forgot to mention that the mantra back then was buy now and double your money or shares in 6 months. I remember at one time Sun Micro was doing 2 for 1 splits once every six months. Buy and hold like works just fine. I just don’t have the stomach for the FANG stocks, though.[/quote]
Buy and hold works great for index funds because it’s a aggregate of a basket of companies so any one failure of one company doesn’t wipe your net worth out.
Buy and hold of a tech company works well if you happen to luckily pick the winners that last through decades of technology shifts. that has more to do with luck than anything else. For every Qualcomm, Intel, Microsoft, Amazon, Google, I can think of a dozen or so other tech companies that at one point showed a lot more promise but don’t exist anymore. Telco tech companies is a prime example. nokia, motorola, ericcson, lucent were market leaders for the longest time. It didn’t take long for lucent to go under , Motorola to die, and Nokia/Ericsson to become significantly irrelevant versus the Korean and Chinese telcos.
But I get it, when things are on a winning streak, especially during the last few years which tech has generally not seen a downturn, it’s hard to imagine how bad things could get and how quickly that could happen. You have time though. I think Powell will juice the markets as long as he can. maybe for another 2-3 years. this really is like 1999 all over again. Things are irrationally exuberant or getting close to it.
AMD is a prime example. There’s no reason why it should be where it is today, definitely the recent 8% rise is unwarranted. No new news from their earnings which while good wasn’t really that great. But for some reason there’s a big cult around it too. I’m simply on it to ride the cult wave. Those options a have already been paid for by previous options, so even of the expire worthless this time, it’s not a big deal. Yes, this is gambling, not investing. lol.
