This problem has been solved this week.
You’ll be able to make chatGPT your boyfriend/girlfriend and have “sex” with it.
Porn bubble does not exist. That’s the big external arrow flooding incomes.
Long live OpenAI, Nasdaq, Stocks!
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I think the main message is David is only counting on earnings and not on the price appreciation. So if he is investing in companies which have 5-10 times PE, then he gets his money back relatively faster in dividends or buy backs even if no one ever care to buy this stock (at a higher price)
In other words in broken market where valuation doesn’t matter , he is simply counting on actual earnings of the company and not the market’s appreciation of this company’s earnings
I see this as old school investing where when you buy an asset, the only thing you can count on is the earnings it generates.
So basically S&P 500 ETF investors can count on 3-4% as that’s the earnings yield. If earnings increase , returns increase. Rest is just luck
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Sounds very sensible to me!
In other, other words, he’s counting that in the short term the market is a voting machine and in the long term a weighing machine 
He is counting that market is simply a gambling machine. That’s my read watching the video. He is not counting on market to ever go back to drive stocks to their true value
But you can still buy companies which make money and just get rewarded in terms of dividend / buybacks
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BTW looking at Gold rally, it feels like something very strange / bad is ongoing and we just don’t see it
Gold is up more than 40% this year (in CHF terms) and something which has 25 trillion USD market cap, it’s not a micky mouse move
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So basically, in the end, which ETF is safe to buy with these conditions? Is there an anti-passive ETF passive investment? Maybe an inverse market-cap weighted index?
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Who knows, maybe we’re all (most, anyway, except those actually living off their investments) blindsided by the “historically line always go up, mkay?”, “diversification is the only free lunch”, “time in the market”, “TINA”, “99.99% of active managers end up in hell” etc axioms.
Oh, and “this time is different” 
Edit: what on earth is the sweat smile?
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No. I don’t think it’s possible via ETFs. Most likely investor need to find companies with good balance sheets, earnings growth potential & low PE multiples
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Didn’t know there was a product to buy gold with hedging. Seems like it’s a double bet - Gold & CHF
I was half joking with some contradictions, but some ETF have to be chasing these criteria…
Maybe in 25 years there would be a research paper, 99% of passive investors underperformed US bonds
P.S -: I am also passive investor
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Exactly, you read it here first.
Which looks like a safe double bet when looking for safe haven asset class.
I am sure soon we will have a product called
Make your own ETF -: just like make your own pizza
Please stop trolling if that was not a typo.
That is exactly what I do since over a decade.
Care to specify?
I was almost serious. ETF (passive) and active investments only work if they use at least one mechanical element: money and probably position management. What happened to the clients of Peter Lynch: they lost money with a fund that made 28% CAGR over a long period of time by buying high and selling low. They were not passive at the moments that count.
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So you meant active approach. Maybe
OK, I see. Sorry for my English, it is a bit rusty. This sentence makes no sense. Probably “… do not make money if they do not use a passive approach when it really counts”.
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