Your Retirement Money is about to get much riskier

[jpmassey]

Tesla is high the same reason Bitcoin is high. People buy it because they think other people will buy it. It's driven by media hype and Robinhood.

 

[Ransil]

Tesla is high the same reason Bitcoin is high. People buy it because they think other people will buy it. It's driven by media hype and Robinhood.

same with the 2 iPO's this week Airbnb and Doordash are stupid high

 

[Eric]

. . . especially once the Fed stops printing money, and inflation takes hold. . .

And here i was thinking that the Feds printing money has been the main driver of inflation.

 

[Poke]

This is all over my head. I’d be scared to get into this, I’m too ignorant about the market.

 

[Ransil]

This is all over my head. I’d be scared to get into this, I’m too ignorant about the market.

buy target date funds and sleep good til retirement

 

[Poke]

buy target date funds and sleep good til retirement

I actually use 3 different firms/approaches. One for 401k advice and one for other investments and personal spending advice. And one for my kids college investments(ny529). I’m afraid off all my eggs in one basket.

i hope at least 2 are good enough.

 

[GarScramb]

Not a single poster really has a grasp on the market that much is obvious. OP does not understand how the market values TSLA.

F you are relying purely on some ETF tracking the S&P to take car of your retirement, you are barely going to keep up with inflation - especially once the Fed stops printing money, and inflation takes hold. If anything that addition of TSLA to the S&P will help your ETF's as they can dump whatever company is doing so badly it is getting the boot from the index. The ETF's make money when the stock goes up, not because of some P/E target that is almost meaningless. Would you have bought AMZN in the first ten years when it lost money every quarter? And if you did how many millions would you be worth now?

To put it simply, TSLA is not valued on P/E or how many cars they sell (at the moment). They are being valued as a technology company, and as the world transitions to e-vehicles, with e-batteries, guided by e-drivers, and homes need solar panels to charge their e-home batteries, the technology owned by and licensed by Tesla will be worth trillions - that is why TSLA is so highly valued.

In a single sentence - the stock market is projecting forward (somewhere between 6 and 12 months depending which "expert" you believe), so the current valuations are predicting that the country will return to some semblance of normal by late summer / fall of 2021. Biden is more in the pocket of wall street than Trumpy ever was (take a look at where wall street money went in the election), so the money men expect the printing of money to continue unabated for the near future.

Why bitch and moan, why not take advantage of the way the system works. I don't try to change the rules of golf, or the course, I accept it for what it is, and play within those parameters, rules and restrictions. If I really give a shit, I may even take a lesson or two to improve.

Just another indictment of the education system really. We over-emphasize the importance of a college education, yet have kids leaving high school who could not balance a check book (or Venmo account). Not difficult to teach. But if you actually taught them how to understand the most basic math and finances, they likely would not be suckered into multi decade student loans that just perpetuate and support the same poor education system (but at least the kids are indoctrinated into socialism, and it is better they don't understand math)



and laughing because I am long TSLA since the $500's - PRE split, heck I bought several large positions at $380 post split, and with TSLA at 625 plus today, those are on their way to double soon. But TSLA options trades this year have been key, responsible for two five figure days alone. Keep hating on TSLA, enjoy the FOMO

You make a lot of assumptions and draw some incorrect conclusions here.

First, no, my retirement isn't in S&P500 funds. Some is because that's the best choice my wife's shitty retirement plan has. But mine is in my own business.

Second, my point was that these retirement funds are going to get riskier. They will fluctuate a lot more as stocks like this join the S&P. It happened in the internet boom and bust.

Third, I understand how the market works pretty well. But in the end every company is valued on whether or not they make money. And betting on Amazon early or Tesla now is effectively a wager. There are lots of other companies out there that have been hyped and had bandwagons that are gone now and lost people a shitload of $$.

 

[Provience]

You make a lot of assumptions and draw some incorrect conclusions here.

First, no, my retirement isn't in S&P500 funds. Some is because that's the best choice my wife's shitty retirement plan has. But mine is in my own business.

Second, my point was that these retirement funds are going to get riskier. They will fluctuate a lot more as stocks like this join the S&P. It happened in the internet boom and bust.

Third, I understand how the market works pretty well. But in the end every company is valued on whether or not they make money. And betting on Amazon early or Tesla now is effectively a wager. There are lots of other companies out there that have been hyped and had bandwagons that are gone now and lost people a shitload of $$.

hell, amazon doubled this year

 

[jpmassey]

Third, I understand how the market works pretty well. But in the end every company is valued on whether or not they make money.

No, that's not at all how a public company is valued. Its only one thing, the whim of the purchaser. Earnings ratios matter not.