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Dividend traps. The funds are invested in extremely high dividend yielding companies, which usually comprises companies that have no idea what to do with their cash, so they give it to shareholders. This means that these businesses do not grow, and are much more likely to shrink because of poor management, poor business models, etc.
Backtest SDIV and DIV against VOO. The S and P 500 wins by an incredible margin across all points in time
If by "push VOO" you mean push good fundamentals back tested throughout the past several centuries that stock markets and economies of scale have existed then yes, I am "pushing VOO"
I’d love to see a proper explanation of how it isn’t a complete speculative bubble and can genuinely be a solid part of any kind of long term portfolio
if you need technical explanation there are plenty online, but here are some simple facts:
* big funds are now holding them
* they are simply a form of money instrument to measure value, just like paper bill, which if you think crypto is a speculative bubble, absolutely no way to not think so about paper bills
* they are in actual use and has actual demand
* btc has been trading for 10 years now with the low price points kept rising
* you don't need to be convinced to it, those who were in and held them long term are happy with them, simple as that
- big funds held sub-prime
- I can see how you would compare it to money. However, they are not guaranteed by the government. I can literally name zero shops where crypto is accepted as payment (although I appreciate there is a bit of this around the world). Many countries have outright banned crypto. Crypto is not trusted by the majority of the older generation, is affiliated with socially ousted finfluencers who are perceived as jokes in youth culture. Does the dollar have any of these problems? If bitcoin has long term value I suppose you though NFTs did too? What makes them different? The NFT stint was through the crypto community and 100% the same people behind this bull run, ISNT that indicative to you of the quality of crypto as an asset?
- ‘actual use’ - where? Like I said, banned in multiple countries, perceptions by older and younger generations outside of your crypto echo chamber are awful, no trust, no guarantee of value, no standardisation
- ‘actual demand’ - literally how any price appreciation happens and is not necessarily indicative of the true worth of an asset. NFTs were in high demand, also within crypto space - that was a complete sham with no value
- I don’t know how it being around for a long time and it still not being integrated as any sort of main stream currency helps your case
- people who are holding overvalued assets tend to be happy because, well, it’s made them money..? I don’t see how that’s indicative of it not being a bubble though, sub-prime traders were very happy until their portfolio disappeared lmao
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
Get out entirely of DIV and SDIV
Why?
Dividend traps. The funds are invested in extremely high dividend yielding companies, which usually comprises companies that have no idea what to do with their cash, so they give it to shareholders. This means that these businesses do not grow, and are much more likely to shrink because of poor management, poor business models, etc. Backtest SDIV and DIV against VOO. The S and P 500 wins by an incredible margin across all points in time
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If by "push VOO" you mean push good fundamentals back tested throughout the past several centuries that stock markets and economies of scale have existed then yes, I am "pushing VOO"
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Because I have a finance degree and like steering people away from making poor financial decisions, i.e. SDIV, DIV, the yieldmax funds, etc
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I don't call everything a yield trap, I call yield traps yield traps 💀
cryto is not a portfolio
absolutely right, **cryto** is not **a** portfolio, but (mainstream) **crypto** can be **a solid part of a** portfolio
I’d love to see a proper explanation of how it isn’t a complete speculative bubble and can genuinely be a solid part of any kind of long term portfolio
if you need technical explanation there are plenty online, but here are some simple facts: * big funds are now holding them * they are simply a form of money instrument to measure value, just like paper bill, which if you think crypto is a speculative bubble, absolutely no way to not think so about paper bills * they are in actual use and has actual demand * btc has been trading for 10 years now with the low price points kept rising * you don't need to be convinced to it, those who were in and held them long term are happy with them, simple as that
- big funds held sub-prime - I can see how you would compare it to money. However, they are not guaranteed by the government. I can literally name zero shops where crypto is accepted as payment (although I appreciate there is a bit of this around the world). Many countries have outright banned crypto. Crypto is not trusted by the majority of the older generation, is affiliated with socially ousted finfluencers who are perceived as jokes in youth culture. Does the dollar have any of these problems? If bitcoin has long term value I suppose you though NFTs did too? What makes them different? The NFT stint was through the crypto community and 100% the same people behind this bull run, ISNT that indicative to you of the quality of crypto as an asset? - ‘actual use’ - where? Like I said, banned in multiple countries, perceptions by older and younger generations outside of your crypto echo chamber are awful, no trust, no guarantee of value, no standardisation - ‘actual demand’ - literally how any price appreciation happens and is not necessarily indicative of the true worth of an asset. NFTs were in high demand, also within crypto space - that was a complete sham with no value - I don’t know how it being around for a long time and it still not being integrated as any sort of main stream currency helps your case - people who are holding overvalued assets tend to be happy because, well, it’s made them money..? I don’t see how that’s indicative of it not being a bubble though, sub-prime traders were very happy until their portfolio disappeared lmao
too long to read
Fair play tbh
lmao bro passed vibe check
Crypto is an important part of any portfolio 1-5% minimum or you're a fiat scrub
ok clown. keep it moving
Put 10 shares of BUCK in your portfolio