Comment by thmoonbus | Hacker News Reader

Comment by thmoonbus | Hacker News Reader

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Disclaimer: I am not qualified to give investment advice, I’m just an average tech worker who spent some amount of time on bogleheads forums.

I personally don’t invest more in tech than I need to via broad index funds (and I certainly never keep my RSUs in the company stock, I always sell immediately). Otherwise, if there is a sector-wide downturn, I’d be triple exposed - my paycheck, my tech investments, and my company stock. That seems like a lot of risk to take on.

I’m open to other opinions here.

Which game would you rather play:

   A. Guaranteed $1,000 each month
   B. Every month, flip a coin. Heads gains $5,000, tails you lose $1,000.

Obviously B has greater expected return, but losing $1,000 hurts. What if you can't pay the rent that month?

To me, that's SPY vs. QQQ. Tech in general has higher expected return, but more volatility. If you can handle the volatility, then QQQ is better. If not, then not.

Ultimately, I'm taking a bet on tech because I believe tech has the greatest chance of improving the economy/world.

[I'm also not qualified, so do your own research]

For other's interested in leveraged ETFs please see this excellent piece from Ben Felix: https://youtu.be/E7pl0tqzIUQ?si=py-3Uy1wb_yG3e5U

Neither QQQ nor SPY is a leveraged fund.

Avoid leverage unless you really, really can't.

It's hard to go bankrupt without it. It makes sense for money you can afford to lose and for a house, but that's it.

Note: I am very conservative with investments.

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