Quote:
Originally Posted by JDMDreams
I think obviously it's case by case, sure the market is green this year, but for a lot of people it was like at least -20% last year. Maybe I'm doing it wrong but I'm still in the negatives. And even mutual funds that average people invest in, especially conservative funds that old people buy. They haven't recovered. A old person isn't just gonna have invested in the s&p index for the first time in their life in the last 6 months so they are green. Everything is relative. Will the market drop by another 6% this year, I would say that's pretty likely given how the rates are going. As someone above has mentioned. 5.8% is guaranteed risk free rate. Not everyone has the appetite or can even afford to loose another 6% and wait another x years for it to come back.
If someone told you I'm just gonna give you $600, with no risk would you take that? Or maybe I'll give you $1000 but you can also owe me $600. What do you think people will choose.
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If your portfolio is negative right now, all that means is you're relatively new to investing in the stock market. Some possible reasons you're red right now...
1. You picked individual stocks and they are underperforming
2. You invested during the July 2021-April 2022
3. You started swing trading and did not do well.
If you simply bought the S&P 500 index (VFV) during any point in time outside of July 2021-April 2022, you should be in the money right now.