I just want to add one more thing about the Stock market -
The statistics show that 52% of adults under the age of 30 are living at home.
This itself will have questions you can ask yourself?
1. Why? - Because cost of living is so expensive, so even though they have low paying jobs they can't afford a normal life living alone but want to earn more money.
2. Where does the money they earn go? - Well everyone knows if you invest in the stock market it will always have a 6-8% ROI which beats inflation.
So the logic is, I don't make that much money so I'm going to make my money work for me and buy ETF's (Your argument was well buy and it will be worth more after the recession)
ETF's are now NOT purchased because of their performance but because of the belief they will continue to increase at 6-8% every year.
Good example of how irrational the markets are right.
Is it a massive bubble? Or is the valuation good?
Since March 20th, 2020 the Dow jones was at roughly 18,210
As of April 8th, 2021 it's at 33,495
An increase of 15,285 Base points.
a gain of... Drumroll.. 83.54%
Over 388 days...
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Be cautious with what the future holds in store. Not financial advice but something to think about
Amazon increased it's profits by 84.08% in 2020 from 2019.
Apple increase it's profits by 3.9% in 2020 from 2019.
Apple stock is up 140% Since March 20th, 2020
Amazon Stock is up 105% Since March 20th, 2020 (It was higher not at it's peak)
Not saying either are bad companies, but where does the actual valuation of ETF's come from now?
How about all the smaller cap companies though?
It took the Dow Jones from 1897 to July 2013 to go from 15 to 15,285 Which is over 100 years.
Almost doubled in the last 388 days when we had lockdowns, it's something to consider and think about in the future.