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neothedreamer t1_iy2cnau wrote

Reply to comment by qwertyWarrior77 in Tech's reality check: How the industry lost $7.4 trillion in one year by Fatherthinger

This. Saying a bunch of money has been lost from an artificial high end of last year is ridiculous.

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That-Whereas3367 t1_iy32tql wrote

It is not ridiculous. Every major tech stock has an annual turnover rate greater than 100%, For AAPL it is over 1500%. So people are buying depreciating stock with new money. Unless the prices recover that money is lost forever [Because most tech stocks don't pay dividends.]

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neothedreamer t1_iy5rp8r wrote

This is true, however people DCA into their retirement accounts will probably be sitting on those positions for decades so there will be ample time for normal growth in the underlying business and stock price.

The last 2.5 years were not normal in any way.

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That-Whereas3367 t1_iy88gku wrote

Most of these tech corporations won't be around in 20 years.

Index funds 'work' because all the failures are automatically culled.

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neothedreamer t1_iy8uddm wrote

I don't know about that AAPL IPO'ed in 1980, MSFT in 1986, AMZN 1997 all are older than 20 years and part of Top 10 in S&P.

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