MORE IDEAS FROM THEBOOK
Investing is not magic. Remember that ...
If you can stick around long enough and keep learning, you will be successful at this game. Learn the basics and practice.
An exchange traded fund (ETF) is a type of security that tracks an index, sector, etc... but which can be purchased or sold as a regular stock:
Growth ETFs have a higher upside potential, as they are created to outperform the market. They are also more volatile, which makes them more suited for young people who can live past downturns.
The Buffett Indicator is the ratio of total the United States stock market valuation to GDP. It is said to be the best predictor of market corrections or crashes.
As of May 6, 2021:
Historically, when the stock market went above GDP by 50-100% it crashed, going below GDP. 2021 is the year in the last 100 years when the ratio was over 2x the largest stock market in history.
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