Vanguard adds non-diversification warning to Total Stock Market

[boglerdude]

Blindly buying the index is well established as better than picking. There's an AI narrative bubble but it could take years to pop, and then there will be another narrative that distorts some other sector.

But yeah, people are throwing money at stocks because an iBond is 4% and M2 is 7%. I hate buying gold because its stupid but millions of people are competing online now you cant stock pick like Buffett

[mathjak107]

equities and gold has beaten equities and bonds for 25 years now over almost every time frame .

not so stupid

[boglerdude]

Gold isnt an investment, it doesnt do work like a house or a tractor. Its savings, and it doesnt go up, its dollar going down.

But there arent good alternatives if you want global diversification

[yankees60]

equities and gold has beaten equities and bonds for 25 years now over almost every time frame .

not so stupid

Would you buy gold at today's prices?

[yankees60]

Gold isnt an investment, it doesnt do work like a house or a tractor. Its savings, and it doesnt go up, its dollar going down.

But there arent good alternatives if you want global diversification

Yes, it does not give any returns. But it is a diversifier and something that does go up during times of stress. It is not an inflation fighter.

[mathjak107]

equities and gold has beaten equities and bonds for 25 years now over almost every time frame .

not so stupid

Would you buy gold at today's prices?

absolutely.

in effect anyone holding gold or any investment is actually buying in each day .

you will be up or down in dollars which are all yours for the taking exactly the same amount whether you already own it or are first buying it.

it’s always so silly when others tell someone not to buy something , yet they own this asset themselves and are keeping it in play at each days price

[Jack Jones]

in effect anyone holding gold or any investment is actually buying in each day .

I disagree, but I'll grant your point when it comes to paper/e-gold since you can easily swap for another piece of paper.

[dualstow]

..
in effect anyone holding gold or any investment is actually buying in each day .

you will be up or down in dollars which are all yours for the taking exactly the same amount whether you already own it or are first buying it.

it’s always so silly when others tell someone not to buy something , yet they own this asset themselves and are keeping it in play at each days price

I have read that sentiment many times over the years, but there’s just something subtly different about being up 170% (down from 190%) versus being down 20%.

Still, I realize that’s behavioral finance and not logical.

[yankees60]

..
in effect anyone holding gold or any investment is actually buying in each day .

you will be up or down in dollars which are all yours for the taking exactly the same amount whether you already own it or are first buying it.

it’s always so silly when others tell someone not to buy something , yet they own this asset themselves and are keeping it in play at each days price

I have read that sentiment many times over the years, but there’s just something subtly different about being up 170% (down from 190%) versus being down 20%.

Still, I realize that’s behavioral finance and not logical.

I'm with mathjak on this one.

Decades ago I said to a friend who was an investment advisor that each day when you portfolio remaiins static .. it's the same as selling all and buying it that day.

[dualstow]

Haven’t you ever heard of taxes, Vin?

Seriously, though. For a broad market fund, I don’t know how to capture the value without holding long term.
(Maybe the analogy could be made for individual stocks?)

There are some on b’heads who just stop buying new stocks at some point. All new money goes to cash or other non-stock investments.

[boglerdude]

A type of Sunk-cost fallacy. eg I think gold is too expensive and would tell someone not to buy. Meanwhile I hold because Im committed as if it were a house you cant easily unload. Paper assets are liquid, you're buying back in everyday

[mathjak107]

..
in effect anyone holding gold or any investment is actually buying in each day .

you will be up or down in dollars which are all yours for the taking exactly the same amount whether you already own it or are first buying it.

it’s always so silly when others tell someone not to buy something , yet they own this asset themselves and are keeping it in play at each days price

I have read that sentiment many times over the years, but there’s just something subtly different about being up 170% (down from 190%) versus being down 20%.

Still, I realize that’s behavioral finance and not logical.

one can be up 170% in another asset , sell it swap it for gold today ….and be down 20% in gold , yet it’s no different then had you owned gold up 170% and it fell the same 20% .

balances are the same in both cases .

so mentally we may feel better having a gain and being down 20% but financially there is no difference as your balance and net worth fell by the same 20% in the investment either way.

so the reality is we all are buying in at today’s price if we keep an asset in play regardless if we already own the asset or first buying it

[dualstow]

I know, but I’m not a day trader.
And the only way I know to succeed is to stay in and rebalance.
So far, so good.