TL;DR
Market dips are normal, but this time feels different. The confluence of inflation, war, and a tech bubble echoes past crashes, hinting at a deeper systemic issue.
Story
Long-term investing? That’s a laugh. Most folks are diamond-handed until their portfolios look like they got hit by a meteor.
Ryan Detrick tweeted about how even the “best” years have brutal drops. He points out the S&P 500’s worst day in 1997 was -6.9%, yet the year ended up 31%. Sounds encouraging, right? Don’t fall for it.
This isn’t about a single bad day. It’s the trend, the reason behind the drop that should make your stomach churn. The economy is a Jenga tower built on debt and denial, and right now, some serious blocks are getting pulled.
Remember 2008? Subprime mortgages, bundled and sold like snake oil? The market cheered until the music stopped. Same story, different costumes.
This time, it’s inflation, war, and a tech bubble that makes the dot-com era look like a lemonade stand. We’re drowning in cheap money and meme stocks, and when the tide goes out, we’ll see who’s swimming naked… and who’s holding the bag.
People are scared, and they should be. Trade wars, political instability – it’s a recipe for disaster. Like a house of cards built on shifting sands, the market is fragile.
‣ S&P 500: The Standard & Poor’s 500, a stock market index tracking the performance of 500 large-cap U.S. companies. ‣ Meme stocks: Stocks hyped up on social media, often divorced from fundamental value. ‣ Tech bubble: A period of rapid growth in the technology sector followed by a dramatic crash.
So, yeah, maybe 1997 bounced back. But history doesn’t repeat, it rhymes. Don’t fool yourself into thinking “this time is different.” It rarely is.
Job losses, evaporating retirement funds – that’s the human cost. And it’s coming.
Advice
Diversify your portfolio, research before investing, and don’t bet your life savings on meme stocks or get-rich-quick schemes. The market is a casino, and the house always wins in the end.
Source
https://www.reddit.com/r/investing/comments/1j8xzl5/everybody_in_the_world_is_a_longterm_investor/