finance

Younger generations got psyoped into yeeting their paychecks into index funds

It might be a +EV strategy, but it’s lazy and it trains people into not caring about what they’re buying, or even worse - not knowing!

Imagine doing that for a car or for the food you eat (actually this is also true in America 🙃)

what would you recommend instead for a low effort strategy? 

the average person ends up losing money trading because the natural tendency is to buy high on good news and sell low on bad news

the DCA index strategy at the very least has lower volatility and minimal trend following mania compared to other approaches

I've even talked to traders that do the index DCA strategy because they make so much money at their day job that they don't want to spend any of their free time managing a portfolio

this generalizes that the best investment advice for most is to increase income and their subsequent savings rate, not tweaking portfolio

the only people I know who outperformed were the ones buying tech stocks because they worked in the industry and bullieved, but this is usually terrible advice because you are increasing the downside risk that an industry downturn puts you out of work and blows up your savings simultaneously