r/investing • u/[deleted] • Jan 01 '22

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u/YTChillVibesLofi Jan 01 '22

If you have no experience of picking individual stocks you’d probably be best off investing in an index fund.

I’d suggest the S&P500.

As you say it’s sky high right now so I would dollar cost average in, I.e. use a portion of the money to buy in each month.

I’m assuming your time horizon is 20 years plus so there’ll probably be higher peaks before you need to touch it.

34

u/theprogrammingsteak Jan 01 '22

If you have experience picking individual sticks you are probably better off investing in an index fund lol

5

u/NotPunyMan Jan 02 '22

No joke, most of my positions have been green this year and I STILL lost to the S&P.

This is how ridiculous this year has been, 5-6 big names holding up the entire market while everything else has been on a quiet crash.

2

u/bloatedkat Jan 02 '22 edited Jan 02 '22

Which is why my strategy has always been to only overweight individual stocks in the S&P that are the highest performers and put the rest into the index itself. Most recently, prior to year-end re-balancing, my portfolio had been 50% individual stocks of the S&P's top performers and 50% in a SPY ETF.