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Is it warranted to feel a little uneasy about the dogmatic advice of "just put all your money in ETFs?" Aren't assumptions that something will always have a fai
by jameslk 11y ago
Is it warranted to feel a little uneasy about the dogmatic advice of "just put all your money in ETFs?" Aren't assumptions that something will always have a fair return the way bubbles are formed?
- WA 11y agoNot necessarily. With ETFs like MSCI World, you simply get the benefits of economic growth.
- markvdb 11y agoMay I suggest that limitless economic growth is a debatable premise to start from? Have a look at https://en.wikipedia.org/wiki/The_Limits_to_Growth https://en.wikipedia.org/wiki/The_Limits_to_Growth . From 1972, but still worth a look.
- Geee 11y agoWe already and always live at the limits. Innovation is pushing those limits further everyday. For example, Internet solved lots of limits related to physical locations, distances, and land areas, electric cars and sustained energy production will solve limited oil supplies, space exploration and asteroid mining will solve limited resources of other materials (if they aren't made irrelevant before that by other innovations). Etc..
- blazespin 11y agoYes, but the fed/government backstops the s&p. Your only option really is to invest outside the U.S.
- cbr 11y ago> the fed/government backstops the s&p How so?
- mahyarm 11y agoPeople don't put money into ETFs to get speculative returns, but better-than-bank-account returns with diversification. Bubbles are often formed by speculation, and usually in a singular asset class.