The Wednesday Wellness threads are meant to encourage users to ask for and provide advice and motivation to improve their lives. It isn't intended as a 'containment thread' and any content which could go here could instead be posted in its own thread. You could post:
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Requests for advice and / or encouragement. On basically any topic and for any scale of problem.
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Updates to let us know how you are doing. This provides valuable feedback on past advice / encouragement and will hopefully make people feel a little more motivated to follow through. If you want to be reminded to post your update, see the post titled 'update reminders', below.
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Advice. This can be in response to a request for advice or just something that you think could be generally useful for many people here.
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Encouragement. Probably best directed at specific users, but if you feel like just encouraging people in general I don't think anyone is going to object. I don't think I really need to say this, but just to be clear; encouragement should have a generally positive tone and not shame people (if people feel that shame might be an effective tool for motivating people, please discuss this so we can form a group consensus on how to use it rather than just trying it).
Jump in the discussion.
No email address required.
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Why? No matter how successful a company has been in the past, any dip can be a long-term re-evaluation or even the start of the way to bankruptcy. Especially if you consider the average person asking for investing advice, thinking they can reliably tell apart an irrational panic that will soon be corrected, or a genuine problem that will have long-term impact seems foolish to me.
On the other hand, index funds can't really go bankcrupt. At most, it just stays lower than expected for an extended period of time before going up again. The risk/reward for buying into the dip seems much better here for the average low-knowledge investor.
A decent plan is to buy solid, growing companies during macro noise/sell-off events, such as the dates I mentioned.
It's very unlikely that the market uncovered terrible upcoming fundamental news about the specific company at the exact same date as the market wide fear and liquidity need.
The whole point of an index fund is that it's basically always better than guessing which companies are "solid and growing" and this advantage is only more obvious, not less, as time goes on (in part because index funds inherently re-weight on a mechanical basis as companies enter and exist whatever toplist they track, though minor differences especially within index ETFs exist in implementation). Turns out that judgement is way more subjective than often appreciated, according to the data.
There exist some speculative, theoretical reasons why index funds especially in their modern iterations might backfire in the future, but these remain wholly speculative, would mostly affect all investors roughly in aggregate together, and are not worth the time of day for most investors.
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