Best Index funds, Wealth transfer, and Market Sell-off

Make hay while the sun shines

“Be fearful when others are greedy and greedy when others are fearful” - Warren Buffett 

Well, it’s that time again in the markets when perpetual bears get to tell you ‘I told you so’. Nasdaq is down more than 25% YTD and it doesn’t look like any good news is around the corner. 

But not all hope is lost. If you are a long-term investor, one of the best times to invest is during market corrections such as the one we are seeing now. The market can still be considered expensive according to historic indicators but, if anything, it’s a good sign that people are becoming bearish because irrational exuberance tends to be a much bigger indicator of tougher times ahead than excessive pessimism. As you can see from the CNN Fear and Greed index below, we are in an extreme fear situation and historically this has been the best time to invest. 

Source: CNN 

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Best index funds 

Here is the deal: People love to overcomplicate investing. 

Just buy in-the-money puts expiring on May 12th over here, margin your risk portfolio when the Fibonacci sequence falls below the 369 day moving average….and, as long as you exercise your call options on the QQQ before CPI reports….you’ll have a 50/50 shot of….at least making at least five dollars - Some wallstreetbets technical trader 

In all seriousness, investing is really really easy and profitable if you do it the right way. The technique I discuss in this video will outperform 99% of all actively managed funds. Below are the 6 index funds that I discuss in detail in the video that you can possibly use to buy the dip.

1. Vanguard SP500 - VFIAX 

2. Total Stock Market - VTSAX 

3. Vanguard International - VTIAX 

4. Vanguard Growth Index - VIGAX 

5. Vanguard Global Market - VTWAX 

6. Vanguard Real Estate - VGSLX

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Greatest wealth transfer of our generation

So far, in 2022 the NASDAQ plunged into a bear market, hundreds of stocks are trading at their all-time low, the economy has begun to shrink, inflation is the highest in 40 years and, a recession is likely on the horizon! 

But, beneath all the bad news lies one of the best opportunities to build your wealth quicker than any other recent time and I will break it down backed with actual studies, statistics, and history - So that you understand how important the next few months can be! 

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Market Sell-off

Throughout the last few weeks, there’s been a new topic that’s beginning to make its round around the internet. Billionaire investor Ray Dalio went on record to say that the stock market was on the ‘Edge’ of a bubble similar to the magnitude of the DotCom Crash, and the 1929 Great Depression. According to him, bubbles like this can be measured by 6 predictable categories that repeat throughout history. 

While I admit that there is some eerie similarity between what we are seeing now and what occurred before the previous crashes, it’s important to break this down to see what it would mean for our investments and whether or not our market compares to the previous bubbles throughout history. 

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So that’s it for my Sunday round-up. For the new folks here, in this newsletter, I give a quick recap of whatever you may have missed over the week on Sunday, and on Wednesday, I will be doing my deep-dive article on one of these topics.

See you next week with another bunch of exciting videos!

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