Re: S&P 500
Posted: Thu Dec 12, 2019 6:31 am
And even individuals change style. A value guy becomes a factor guy.
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Interesting how those are all tech stocks. So there's not only a concentration of a few stocks, but also in that one sector.
I, too, am also glad I have some diversification away from TSM upon hearing this.sophie wrote: ↑Sun Dec 15, 2019 9:24 amInteresting how those are all tech stocks. So there's not only a concentration of a few stocks, but also in that one sector.
This makes me glad I started adding a set of individual stocks to complement my index fund holdings. I avoided the tech sector for exactly the above reason, and picked blue chips or solid companies spread around the other sectors.
Of course they will, until they won't.boglerdude wrote: ↑Mon Dec 16, 2019 2:20 am And those tech stocks will outperform because of your pessimism, just like Facebook has since IPO. The Wall of Worry!
Misery loves company? I had one IRA that I'd invested all in the Janus Mercury Fund 1998. I am almost certain that it was high technology stock concentrated. I'd invested $30,000 and at its peak it hit $130,000. In January 2003, I sold it all for $25,000.sophie wrote: ↑Mon Dec 16, 2019 7:53 amOf course they will, until they won't.boglerdude wrote: ↑Mon Dec 16, 2019 2:20 am And those tech stocks will outperform because of your pessimism, just like Facebook has since IPO. The Wall of Worry!
I still have some PTSD from the advisor who put my Roth IRA 100% into tech stocks in 1999/2000. You can guess what happened after that. It went from ~$100K to about $12K. Not saying history is going to repeat itself, but that was an expensive lesson in avoiding stock concentration in any form. (Also in trusting advisors to make investment choices - I was young and dumb at the time.)
Although I should point out, the portion of the S&P 500 we're talking about here is only 16%. A 2000-style tech crash would not cause anything like my experience above.