Motley Fool Money FTX Collapse: Lessons for Investors
Nov 30, 2022
Jim Gillies, a Senior Analyst at Motley Fool, shares his keen insights on smart investing strategies and balancing portfolios. He calls the Dow Jones Industrial Average 'the dumbest index' and discusses the search for stable investments amid market volatility. The podcast delves into the dramatic rise and fall of FTX, exploring risky practices and the consequences of its collapse. Jim emphasizes the need for regulatory scrutiny in the crypto space and highlights key lessons for investors navigating these turbulent waters.
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Dow vs. Nasdaq
- The Dow Jones Industrial Average outperforms the S&P 500 and Nasdaq in 2022.
- However, over the past decade, the Nasdaq has yielded the highest total return.
Long-Term Investing
- Prioritize long-term investing and dollar-cost averaging for optimal returns.
- Don't solely rely on short-term market fluctuations when making investment decisions.
Dow's Popularity
- The Dow Jones Industrial Average gets a disproportionate amount of attention due to nostalgia and inertia.
- Its construction is flawed, and it's not the most effective index for measuring market health.