Lazy Investing is dead, Permabears and Permabulls on life support
Last year I mentioned briefly that I was going to writh a blog on lazy investing. Rofgile has inspired me to finally write this blog.
Lazy investing, or what others have deemed "buy and hope" and "buy and forget" is dead and has been for at least a decade now. This is a stock picker's market. No longer can you "invest in an index fund and earn 8% return a year". If you want to make any money in these markets, you are much better off investing in individual stocks or sectors of the market. This of course takes knowledge, discipline, and patience. Traits that normal retail investors lack. Unfortunately, thanks to the (8% returns a year) propaganda spit out repeatedly over the lack few decades, I highly doubt there are many brokers or financial advisors that understand this concept.
What I think needs to die with along with lazy investing is the idea of the "permabear" and "permabull". In this stock picker's market, you will not make any money if you are a strict permabear or permabull. In other words, you cannot buy a security and simply assume it will go up forever or short a stock assuming it will go down forever. You have to do you do diligence and periodically examine the fundamentals of each sector or stock. And if those fundamentals change, you have to have the discipline to know when to pull the trigger. For this reason, I highly doubt there are any more than a handfull of true permabears or permabulls on this site. I think everyone else falls in the middle, being bearish some sectors and bullish others. Just because someone doesn't agree with you doesnt mean they are a "permabear or permabull" on whatever they dont agree with. People are going to invest in what works and feels comfortable to them.
If you prefer to invest in dividends rather than precious metals, then good for you. But don't label me a "goldbug" simply because I choose to invest in pms than dividend stocks. Why can't it be simply that I know more about PMs than you and you know more about dividend stocks than me? So you like puts and I like calls. You like high beta stocks, I like the safe bets. Potato, Potahto, who cares? Its this diversity that makes the CAPS community worthwhile.
I think all too often we get too emotionally tied to our individual beliefs. So much so that we tend to lash out at anyone who doesnt agree with us. Such behavior is not conducive to a productive exchange of ideas.
I say all this to say, can we cut all this namecalling crap? Its really beginning to bug me.