@lilliannac37 The thing about mutual funds like this are the capital gains distributions that scare me. It's already gone up so much, I dont want to pay for everyone else's gains at the end of the year. Especially when I dont see performance like this as sustainable over the long term.
@lilliannac37 Do you think once this rally ends, and there is some huge correction or an actual market crash, 6% annual returns will be a thing? Or is it more likely we’ll be in a 10 year period of minimal returns?
@skitta 6%-10% typical annual returns will be a thing. If we recovered after dot com and the housing bust, a few EV and weed stocks (along with crypto) being in a bubble isn't going to be more than a blip on the historical charts.
@lilliannac37 I'm afraid you and I both don't know what we don't know. You can't use historic stock prices to predict future stock prices. You should pick up Black Swan by Nassim Taleb. You may enjoy it...
@lilliannac37 Do you think that the large amount of money printed in the last year, and almost all pumped into the markets, will have an effect potentially more catastrophic than the dot com bubble?
@skitta I think you are misunderstanding a major concept here. We are not "printing" anymore money than normal. The government prints money to stave off deflation, keeping inflation at 1-3%. If the government was printing money beyond normal at any significant rate, you would already be seeing 20-40-60-100% inflation. Debt is done through treasury bonds, not literally printing money.
@lifehappenss They are issuing BONDS, this is debt. We technically have to pay it back, although that might be an issue in the future.
If we were printing money like all the crazy pundits were saying at that rate, we would be experiencing hyper inflation. There would not be a delay, aka, look at what happened with Venezuela. It is pretty instant.
@injesusname78 The stock market would only react after the industries did. Once it was clear that inflation was taking hold, prices would raise as the currency devalued. In return, stocks would go up with that inflation. Stocks would not magically go up without some movement in actual goods or services. Otherwise companies would be gaining value while earning less money, which would sort of counter it.
@skitta No. It's not like that money is going to go away. It's been pumped into the economy. The government isn't taking it back and taking it out of the economy.
@skitta As long as them stimmy and interest rate as low as it is, then there's no other way to put your money other than the markets. Once there's rumors about higher rates and no more stimmy, then that is the bell you are looking for.
