Jerry Mathers
Was it me?
the dumb money.
AI bubble burst
- Thread starter goat
- Start date
A broad stock mutual fund does not require smarts to invest in. Whatever after tax money you make from other investments, take half of that and keep putting it 70% domestic broad stock mutual fund, 20% international broad stock mutual fund, and 10% liquid Treasurys mutual fund. If you are smart, that will build a safe fund for the future. If one day you wake up to find you turned stupid, you still have that safe money.
It is amazing how quickly smart can turn to dumb. One day you are ahead of the pack, and the next you are behind the pack. If you follow the strategy above, you will be fine when that happens.
But we are getting ahead of ourselves. I have not made one investment based on AI. I am not even in the testing phase. I am just expressing an interest.
Jerry Mathers
Was it me?
Broad stock mutual fund is certainly not dumb money. It is not smart money. It is matching the market average money, or just average money.
Because there are very low management fees, it beats out most managed mutual funds. It is a good, but not great, deal.
Jerry Mathers
Was it me?
Sometimes. When I invest in stock options, or short term invest in individual stocks, I would sometimes be called dumb money. Smart money would be looking to me(and other dumb money) to provide dumb money. With something like options, you need a counter party (someone buying when you are selling, or someone selling when you are buying), so smart money desperately needs dumb money.
Right now, I have not options, or short term investments. My liquid money is in broad mutual funds, and the rest is long term privately held stocks I got without putting up any significant money.
That is not considered dumb money. So a week ago, I was considered dumb money, today, I am neither smart nor dumb money.
Jerry Mathers
Was it me?
no counterparty should be a sign something is dumb.
Actually, the opposite is true.
If no one is dumb enough to be a counterparty, that is a sign that it would have been a very smart investment.
There are also other investments that do not need a counterparty.
He also defends bubbles.....says it is a feature not a bug of capitalism....yes there is pain when bubbles pop but they have done a lot of building that either would not have happened, or would have happened much slower.
I certainly dont agree with Dowd on that.
I certainly dont agree with Dowd on that.
Jerry Mathers
Was it me?
no.
what I said is true.
creating a counter party because something is a bad idea is stupid.
Executing a bad idea, whether with a counterparty or not, is stupid, by definition.
The dying West is flooded with bad ideas, which almost never get reformed, we keep doubling down on stupid.
BUCKLE UP!
We are at the beginning of a paradigm shift, so many, many ideas are bad... We learn from the bad and make them better.
Global economies are facing the perfect storm of deregulation, overleveraged risky speculation, QE, debt default. and too big to jail.
We learned nothing from the scams of S&L, Black Monday, Dotcom, subprime mortgage, so the Epstein class needs WW3 to create oceans of blood.
R U MAD @ ME?
I thought we were buds. We're among the few who vet our news.
Ya I hoped that we agree on the big things,,,,but I am working on my over optimism problem.