Crucial ETF Investment Tips (1)

June. 11,2023
Crucial ETF Investment Tips (1)

There are many techniques to invest in ETFs, such as banding, asset allocation, arbitrage and long/short strategies, but from a long-term perspective, fixed investment is one of the best ways for investors to earn income.

 

Why should we invest in fixed deposits?

 

Because timing is hard. For example, at 2,900 do you wait a little longer until it drops to 2,600 or 2,700 and then enter, or is it a one-time now Just buy one, for many people difficult to choose, a one-time buy the wrong one, may face greater pressure, the conditional investment just happens to be A way to share the cost of a reduced tolerance investment.

 

In other words, you just need to know that the market is now suitable for investment, the market capital is relatively abundant, and there doesn't seem to be much to invest in the stock market without buying it, so you can focus on the stock market and invest through ETFs.

 

The index fund is transparent and efficient, mainly tracking the underlying index, and in operation, the capital utilization rate can reach more than 99%, which is The highest capital utilization rate that you can get without leverage, as long as you don't borrow money to speculate in the stock market or you don't use two financings, 99%. The utilization of the funds is very high. So we can usually see that when the market goes up, the index funds must be very forward or even the best performers.

 

The buying point of fixed investment

 

It is often thought that fixed deposits are about fuzzy correctness.

 

What is fuzzy correct?

 

It's that you don't have to buy at the lowest point, as long as the current general market direction is at a modest medium to long term. There is no need to wait until the lowest point. In other words, if you buy one at the lowest point to start a fixed investment, the daily cost is high and you don't have much time to collect chips at the bottom. So starting a fixed deposit at the lowest point may not necessarily result in the highest returns.

 

When the market starts to enter the bottom, you can keep investing in fixed deposits to collect chips. That's why it's often said that fixed bets are best when the market is low heat and valuations are low, and fuzzy correct timing + quality index products make up the The easiest way for everyone to operate and get started with an investment that can overcome some of the most difficult aspects of everyone's human nature. Point.

 

When you think your neighbor's aunt is making money before you have to invest, that might be the high point, you might as well collect chips by fixing at the market lows and then look across bull and bear cycles.

 

Secondly, the fixed deposit is highly forgiving.

 

That is to say, it is very unlucky to start fixed-vesting at a very unlucky time, and then pick the time when the index is at its highest, isn't it a terrible thing to start fixed-vesting?

 

Through previous shifts in the bull/bear cycle, assuming that fixed-income investing began at market highs, such as the 6,000+ points in 2008. It was a loss for a while, and going forward, when will that loss be gradually recouped? If you start the fixed investment at the highest point, two years is the time to get a positive return of almost 18%-20%. It is that even if you fix the investment at the highest point, you can get a relatively good return by fading it over a two-year period.