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Investing in the (broad) index doesn’t promise a positive real return. It promises lower volatility than any stock picking strategy. If you want exposure to th
by derriz 3y ago
Investing in the (broad) index doesn’t promise a positive real return. It promises lower volatility than any stock picking strategy. If you want exposure to the Japanese economy, then index investing is still the right choice if you want to maximize return for a given volatility.
- silverquiet 3y agoIf you’ve got a stock picking strategy that promises a real return, I’m all ears. As far as I know, the market makes no promises period.
- EVa5I7bHFq9mnYK 3y agoIt depends on the % of investors that are in those broad indexes. If too many people flock into them, they become more risky than an average stock. And stocks in indexes become overvalued compared to stocks not in indexes.