01-19-2023, 11:14 PM
How to we know the entire stock market isn't just a pump & dump bubble?
<!-- SC_OFF --><div class="md"><p>Everyone gives new investors the same advice, to just buy and hold diversified index funds long-term and you will be practically guaranteed to profit over the long-term. But just like with crypto, this advice obviously benefits the people who are already holding those funds by creating sell orders that drive up the value of their retirement funds. So how do we know that advice isn't just a self-fulfilling prophecy, or a sort of long-haul pyramid scheme?</p> <p>Past performance is not a guarantee of future results, so even with a 100-year history of growth why should we assume that the market will keep rising forever? 100 years is just a blink in terms of human history. Maybe this whole concept of "stocks" is just a tulip-craze bubble that lasted a bit longer.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/skyfucker6"> /u/skyfucker6 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/10g56ct/how_to_we_know_the_entire_stock_market_isnt_just/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/10g56ct/how_to_we_know_the_entire_stock_market_isnt_just/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>Everyone gives new investors the same advice, to just buy and hold diversified index funds long-term and you will be practically guaranteed to profit over the long-term. But just like with crypto, this advice obviously benefits the people who are already holding those funds by creating sell orders that drive up the value of their retirement funds. So how do we know that advice isn't just a self-fulfilling prophecy, or a sort of long-haul pyramid scheme?</p> <p>Past performance is not a guarantee of future results, so even with a 100-year history of growth why should we assume that the market will keep rising forever? 100 years is just a blink in terms of human history. Maybe this whole concept of "stocks" is just a tulip-craze bubble that lasted a bit longer.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/skyfucker6"> /u/skyfucker6 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/10g56ct/how_to_we_know_the_entire_stock_market_isnt_just/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/10g56ct/how_to_we_know_the_entire_stock_market_isnt_just/">[comments]</a></span>