08-27-2021, 01:52 PM
(This post was last modified: 08-27-2021, 01:52 PM by crimsonghost747.)
The thing that really skews this viewpoint is the fact that we are in a bull market that has lasted for the past 13 years. The more growthy things you have bought, the better it has worked for you. And this has quite literally gone on for so long that the majority of investors, myself included, have never witnessed anything other than a strong bull market. The story will be very different when (if??) we see a bear market again. Times change, this market surely isn't anything like what we have seen before. Any sign of a downward turn leads the central banks to just pump more money into the market.
That may sound like an exaggeration, but just a week ago Jerome Powell said that they want to start lowering FED purchases before the end of the year and the market fell a couple of %. Today he said that they aren't in a hurry with it and that they don't want to do anything too fast. Absolutely zero has changed in the economy since last week, the guy is just a talking head saying what people want him to say. And by proxy, the FED policy seems to be what the people want it to be. We could be heading into another 13 years of central bank powered bull market. And yes, then growth will be where the money will be made.
Quality is always the most important thing for a long-term buy and hold. And paying ridiculous valuations works extremely well as long as the music keeps playing. But in the end I think it's that it's more about finding the right balance between risk and reward (growth and value) which fits everyone's individual preference.
That may sound like an exaggeration, but just a week ago Jerome Powell said that they want to start lowering FED purchases before the end of the year and the market fell a couple of %. Today he said that they aren't in a hurry with it and that they don't want to do anything too fast. Absolutely zero has changed in the economy since last week, the guy is just a talking head saying what people want him to say. And by proxy, the FED policy seems to be what the people want it to be. We could be heading into another 13 years of central bank powered bull market. And yes, then growth will be where the money will be made.
Quality is always the most important thing for a long-term buy and hold. And paying ridiculous valuations works extremely well as long as the music keeps playing. But in the end I think it's that it's more about finding the right balance between risk and reward (growth and value) which fits everyone's individual preference.