Valuations have reached higher levels before without index funds being everywhere. See dot com boom, Japan etc.
Pension fund performance - do you monitor yours, how is it doing, do you actively change it?
- Thread starter danlightbulb
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Will you be countering what I said or?
Interesting article
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No I agree with your point as well, was just sharing the article as I thought it interesting.
Index funds will mean we have ever greater concentration in the better performing markets. But we can still get crashes in specific sectors as you say.
You can use equal weighted trackers if you are worried. But many markets are concentrated into only a handful of stocks.
This one here is similar to what you said but with data on indices. FTSE 100 very concentrated. May have changed a bit since it was written but I'm sure it will surprise many.
Concentration risk: The markets driven by the fewest stocks | Trustnet
News archive including articles on Fund Managers, Fund Selection, Asset Allocation, Absolute Return, Offshore Investments, Tax Shelters, Insurance bonds. Concentration risk: The markets driven by the fewest stocks | Trustnet
www.trustnet.com
Concentration vs valuation risk. They are different.
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You can use equal weighted trackers if you are worried. But many markets are concentrated into only a handful of stocks.
This one here is similar to what you said but with data on indices. FTSE 100 very concentrated. May have changed a bit since it was written but I'm sure it will surprise many.
Concentration risk: The markets driven by the fewest stocks | Trustnet
News archive including articles on Fund Managers, Fund Selection, Asset Allocation, Absolute Return, Offshore Investments, Tax Shelters, Insurance bonds. Concentration risk: The markets driven by the fewest stocks | Trustnet
Concentration vs valuation risk. They are different.
Depends on the source of the valuation surely? If the valuation is a result of rising investment from index trackers, which favour the largest companies in the index already, then the two are linked.
Unfortunately I don't have access to an equal weighted fund in my scheme otherwise I might consider putting a bit into it. But then, if everyone else continues to use standard index funds, I'd likely be doing myself out of returns.
Soldato
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Nah, YouTube black and red text, clickbait, I'm not clicking it.
100% this - someone in their bedroom making clickbait titles about index funds.... Count me out...
Invest in what you want - how you want... These videos are just ridiculous
1st April to 1st May... -0.15% - Better than I thoughtWorld trackers are about flat vs 4 weeks ago.. go on look
The 2nd video posted above is by a financial planner.
The first video is posted by Ben Felix
he just works as Chief Investment Officer and Portfolio Manager at a PWI Capital...
Our Team | PWL Capital
pwlcapital.com
He seems to be very respected in the investment social media world by people like
Patrick Boyle - Professor teaching Financial Derivatives to Master's in Finance Students at Kings College London, author and portfolio manager/quant trader.
and Richard Coffin - Investment analyst and small wealth manager for WDS Investment Management...
Those people are licensed traders and financial advisor, they DON'T actually tell people what to buy and sell, they just give both sides of a debate.
And if people actually watched the videos, they don't say do not buy index funds.. one explains how index funds can be better and the other explains how index funds are being missed used by investors.
