TL;DR
Retail investors are feeling frustrated that their stock picks aren’t performing as well as the S&P 500, sparking discussions about the financial system and the importance of diversification.
Story
Ever feel like you’re running a race where the finish line keeps moving? That’s kinda how some folks are feeling about the stock market lately. A Reddit post showed how retail investors (regular people like you and me) haven’t been doing as well as the S&P 500, a big basket of different stocks. It’s like trying to bake a cake from scratch while everyone else just buys one pre-made - and theirs looks better! Some people felt they were losing even when they thought they were making good moves (‘calls’). They spent time researching (‘DD’ - due diligence), lost sleep worrying, and still ended up behind. It’s frustrating, right? Like meticulously planning a road trip only to find out you’ve been going the wrong way the entire time. It’s also sparked some talk about how the financial system might not be set up to benefit everyone equally. A few comments even touched on darker thoughts about the future – who knows what things will truly be like? But hey, one thing we all know: it’s easier to laugh than cry, and humor helps even in tough situations. So, while some may joke darkly, they’re also connecting with others, and that’s something, right? What’s the takeaway here? Diversification (don’t put all your eggs in one basket) is key. The S&P 500’s success is partly due to it containing LOTS of different stocks. If one company has a bad year, others can pick up the slack. Think of it like a team sport—you win as a team, even if one player has an off day. If you’re new to investing, don’t get discouraged! It’s a marathon, not a sprint. Start small, learn as you go, and remember that everyone starts somewhere. It’s important to take a breath, connect with fellow investors, find some humor in the ups and downs, and keep learning.
Advice
Diversify your investments! Don’t put all your eggs in one basket. Consider investing in index funds or ETFs that track the S&P 500 or other broad market indexes.
Source
https://www.reddit.com/r/wallstreetbets/comments/1huhoq6/2024_performance_retail_vs_sp500/