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Do you want to under-perform during all bull markets so it hurts less during the corrections? If you stayed invested in the broad market through any bubble-pop
by imnotlost 6y ago
Do you want to under-perform during all bull markets so it hurts less during the corrections?
If you stayed invested in the broad market through any bubble-pop you would be better off than aggressive diversification and hedging. Unless you can reliably time the tops and bottoms.
Where else will you invest? China? India? Rest of Asia? Europe? South America? Africa? Specific commodities?
Do you believe the next generations in the US will continue to create value or do you think this is the beginning of a perpetual decline?
- papabrown 6y agoI'm not sure if they're still around, but I remember back in the 1990s there was a family of mutual funds that aimed to do exactly what you're describing. They actually advertised the fact that they won't have the best returns in bull markets because they were protecting people in down markets. The idea was that people benefitted more from staying in the market over a long period of time rather than maximizing their returns in any particular year. So the fund was aimed to smooth out the peaks and valleys along the ride so investors would be more inclined to leave their money parked in the fund rather than getting a statement that said that they're down 30% and going to cash and missing the next run up.