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Or just buy index decade after decade... this of course does not work if you attempt to beat the index or have timespan that is short.
by fsloth 7y ago
Or just buy index decade after decade... this of course does not work if you attempt to beat the index or have timespan that is short.
- tempsy 7y agoThe index has become a bubble in of itself. It's also not as diversified as you would think when Microsoft makes up 5-6% of the S&P and over 10% of Nasdaq.
- hrpnk 7y agoOther indexes, like the German DAX [1] have a hard cap at 10% per company. [1] https://de.wikipedia.org/wiki/DAX https://de.wikipedia.org/wiki/DAX
- dlp211 7y agoSo then purchase and overweight small and mid-caps and international indexes if you think that SPY is top heavy. You don't need to deviate from index investing just because a part of the index is outperforming the rest. Choose an allocation, stick to it, rebalance when you hit some threshold.
- tempsy 7y agoI don’t want to buy the index?
- Kluny 7y agoYou don't have to stick to the S&P index. There are others that follow tech, or commodities, or the Canadian stock market, green energy or what have you. You can diversify yourself.
- MuffinFlavored 7y ago500 of the top American companies is good enough for me. (S&P500)