Hi RIP readers,
Hi RIP readers,
As you probably know if you’ve read my last two posts (2020 Q4 Financial Update Part 2 and Part 2-BIS) I’m a bit concerned that the stock market is heavily overpriced, in a bubble. A bubble that in my opinion has a lot in common with the DotCom Bubble of 2000-2002. This is making me reluctant of investing in stocks again, in fact I sold most of them in July-August 2020.
I want to quantify my reluctance in this post.
Many readers suggested me to “just invest in stocks, this is for the long term!”, “stocks always go up!”, “don’t care about daily fluctuation, they’re just noise… in the long term stocks will return their promised 6-7-10% per year!”, “time in the market beats timing the market”, “YOLO!”.
I already addressed my fears in the previous two posts: fear that we might be at the bubble peak, and fear that it might take a loooong while to recover from a crash – and I’m not as young as you probably are.
“…But look at Bob, who only invested at market peaks and still ended up being trillionaire!”
Congrats Bob, but today I want to introduce you Rolf, the Swiss investor who invested all of his grandma inheritance, 1 Million CHF, in an ETF tracking MSCI World Index on January 1st 2000.
Read more