Omacro Comment: 'Bubbles Are Not Scary. What Is Scary Is Losing Opportunity by Not Being in the Market'

Omacro comment: "Bubbles are not scary. What is scary is losing opportunity by not being in the market." A relaxed talk on investing from CLEC Investment and Financial Education Academy. Post date: April 28, 2021.

The year 2000 was the century-level tech-stock bubble crash. Most of the people who waited until the very peak of the bubble to enter were people who usually had little contact with investing.

In fact, at that time Nasdaq rose from 1974 to 2000, climbing for 27 years and rising 100 times! In the end, by 2002 it had merely fallen back to around the 1996-1998 price level, an 80% drop.

After rising for 27 years, a 3- to 5-year correction is actually healthy. Only those who invested during the four years from 1996 to 2000 would have had paper losses.

Can you imagine buying a house (QQQ) that rose from 1 million to 100 million over 27 years? Even if it corrected by 80% and fell to 20 million, that would not be scary.

Hold it for another 20 years and now it is almost 300 million. Is that scary? Not buying is what is scary!

In 47 years, 1 million rose to almost 300 million!

Even if you bought this house (QQQ) at the highest point in 2000, when it was 100 million, and it fell to 20 million in between, it has now risen back to almost 300 million. You still made a lot of money.

It has only risen for a little more than 10 years now. What if it rises for another 10 years?

This house (QQQ) is correct to buy at any time. Whether it is 1 million or 120 million, you can buy at any time. Now it is almost 300 million, and in the future it may become 3 billion.

So what if it falls to 50 million in between? So what if it plunges in the short term?

The long-term rise is the truth. If you do not dare to buy at 1 million, do not dare to buy at 100 million, do not dare to buy at 20 million, and still do not dare to buy now at almost 300 million, then even if it becomes 3 billion in the future, you will not enjoy it.

We cannot predict the short-term market, but the long term will rise.

If you invested between 1974 and 1995, even the century-level crash would not have hurt you at all.

So the first step in learning to invest is to immediately put the full amount into the stock market. Once it rises, you never need to fear a crash again. If you keep hesitating, you will only become the person who finally buys at the highest point, or worse, spends a lifetime missing the market.

Then you complain that houses are too expensive, pensions have been cut, benefits have been cut, and you become a poor elderly person.

Only by buying QQQ can you enjoy the fruits of economic growth. Even during a crash, as long as you hold long enough or keep buying after the crash, you will profit sooner or later.

Cheap prices after a crash are indeed the best entry point, but no one knows when the crash will happen. Do not wait for a crash before wanting to enter. If you have to wait 10 years for it, are you going to stay empty-handed for 10 years?

And the price after the crash may still be more expensive than it is now!

Especially for people who are still working, continuously investing monthly income is continuous profit. Look back at people who kept investing from 2000 to 2016; they were already richly rewarded.

For broad-market ETFs like this, every high is there to be broken, and every crash low is something the market will never return to. Buy, hold for life, and you will become wealthy.