stock market

[nijamena]

5 hours ago, Pandubabu said:

May be total market index fund instead of s&p 500. Apart from that this is the only good advice in this DB.

No company stays forever on top.

If you are buying individual stocks , you should also know when to sell and we are not Warren buffet to understand all those. 

Total market is also fine. But I prefer 500. 

 

500 maktcap = 50-60% of rest of market.

[Pandubabu]

3 hours ago, nijamena said:

Total market is also fine. But I prefer 500. 

 

500 maktcap = 50-60% of rest of market.

Total market  = 79% sp500 + midcap + smal cap .

There are around 3500 madcap and small cap stocks here. 

You may not go wrong either way . Sometimes midcap and small cap will have a blast . Tesla was not in sp500 till couple of years ago.

It is always good to be more diversified.  

[Pandubabu]

On 7/1/2022 at 2:56 PM, Manishican said:

Don't buy stocks with p/e > 20 or even 15. With interest rate staying higher for foreseeable  future, companies have to borrow at higher interest rates.

That's not a good indicator at all. By this logic,  you should not even buy s&p 500 index which has index greater than 20. 

For growth stocks, p/e would always be greater than 20.

Totally understandable you should avoid high p/e. But 15 and 20 p/e is very decent for growth stock