Another approach is to just keep the index and not worry about it. For each sector or company that is struggling, others succeed. Trying to predict which sectors are in and which are out is impossible over the long-term, and is the main argument in favor of indexing. Don't forget, the S&P 500 adjusts its components every year, and they are always removing dogs and adding promising companies. This means a certain amount of rebalancing always occurs.
Hammer right on the nail again Denis. You are truly a smart guy. Equal weighted index ETF's comprise a lot of my portfolio. Sure I'm not seeing the huge gains others are. But I'm riding the wave and know I will feel more comfortable when this thing corrects. Remember I was in the business for 38 years. Seen it all. Black Monday (20% correction one day...that was scary),dot com bubble,recessions,etc. Not a matter of IF, but WHEN (trees don't grow to the sky). If you look at the total returns over 10 years of an equal weighted portfolio vs. pure S&P500 the results are almost (slightly lower)the same....oh...here in the US it's Father's Day...if you're a dad, then Happy Father's Day Denis!
Thank you for the kind words, Rodger. I respect everyone who's been through those market corrections and bear markets and still stayed invested.
I believe a correction is on the way. There's also divergence between equal-weight S&P 500 and traditional S&P 500 over the last few months. Kind of strange.
Another approach is to just keep the index and not worry about it. For each sector or company that is struggling, others succeed. Trying to predict which sectors are in and which are out is impossible over the long-term, and is the main argument in favor of indexing. Don't forget, the S&P 500 adjusts its components every year, and they are always removing dogs and adding promising companies. This means a certain amount of rebalancing always occurs.
This "self-cleansing" feature of index funds is a huge benefit. Add to that the low management fees and you have a long-term winner in your portfolio.
Hammer right on the nail again Denis. You are truly a smart guy. Equal weighted index ETF's comprise a lot of my portfolio. Sure I'm not seeing the huge gains others are. But I'm riding the wave and know I will feel more comfortable when this thing corrects. Remember I was in the business for 38 years. Seen it all. Black Monday (20% correction one day...that was scary),dot com bubble,recessions,etc. Not a matter of IF, but WHEN (trees don't grow to the sky). If you look at the total returns over 10 years of an equal weighted portfolio vs. pure S&P500 the results are almost (slightly lower)the same....oh...here in the US it's Father's Day...if you're a dad, then Happy Father's Day Denis!
Thank you for the kind words, Rodger. I respect everyone who's been through those market corrections and bear markets and still stayed invested.
I believe a correction is on the way. There's also divergence between equal-weight S&P 500 and traditional S&P 500 over the last few months. Kind of strange.
Keep prospering and see you next week!