1J
It's hard to disagree with the basic statement, but as always, the devil is in the detail.
When it comes to capital market investments as a retirement provision, vola is anything but irrelevant. With maxDD of 73%, as with the Dax, the safe withdrawal rate drops to 2-3%pa. That comes close to a savings account.
Anyone who dismisses vola as market noise has never experienced a 73% drawdown. The psychological strain is enormous if the entire pension provision is invested there. And the risk of selling in panic is also very high.
Finally, the irrationalities you mentioned follow certain rules. You can use them to get more than 8%pa with less than 73% mDD. Momentum investing is the key word. 😬
When it comes to capital market investments as a retirement provision, vola is anything but irrelevant. With maxDD of 73%, as with the Dax, the safe withdrawal rate drops to 2-3%pa. That comes close to a savings account.
Anyone who dismisses vola as market noise has never experienced a 73% drawdown. The psychological strain is enormous if the entire pension provision is invested there. And the risk of selling in panic is also very high.
Finally, the irrationalities you mentioned follow certain rules. You can use them to get more than 8%pa with less than 73% mDD. Momentum investing is the key word. 😬
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@Epi If you start momentum investing early, you will get used to the volatility more quickly and can live off your portfolio in a relaxed manner in old age ;-)
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@Epi Thank you for your contribution! There are many paths to the goal... everyone has to find their own... a path that suits them and their goals. One that you feel comfortable with in the long term and that you can maintain stubbornly and patiently with a high level of discipline.
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20H
@Middlfrangge Hmm, that sounds like the opposite of your post. 🤔
Either invest rationally or emotionally, as you feel comfortable. You can't do both.
Either invest rationally or emotionally, as you feel comfortable. You can't do both.
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@Epi I don't know what you mean meinst🤷♂️ For me, thinking carefully about your investment style and feeling comfortable with it has nothing to do with emotional investing. I hope that you are successful with momentum investing and that you feel comfortable with it😉
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