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Index funds are strongly a momentum investment strategy. I don’t see this appreciated so often. But of course, a properly diversified index fund portfolio cont
by marvin 6y ago
Index funds are strongly a momentum investment strategy. I don’t see this appreciated so often.
But of course, a properly diversified index fund portfolio contains much more than just the S&P500. Mine has some thousand global stocks, on the order of 5000.
- imtringued 6y agoThere is a weird argument by one of the commenters further up. Index funds are too risky because are not diversified enough and mostly focus on tech companies (mostly wrong). Why not buy 5000 stocks individually? Who is going to pick 5000 stocks by hand?
- itsoktocry 6y agoYeah, one of the oddest arguments I see from EMH pumpers is "dude, just by SPY, you can't beat the market". SPY is hardly diversified. A far better and pretty easy portfolio consists of a global financial assets allocation: US stocks and bonds, developed world ex-US stocks and bonds, emerging markets stocks and bonds, real estate and commodities. 10-12 ETFs will do it.