I just wouldn't feel comfortable investing in just one country and almost just one sector.
You also have much higher volatility due to the often overvalued tech sector.
You have to be able to withstand that.
Also possibly unpleasant at some point in the payout phase. Selling at -20% or even lower in a bear market is certainly no fun.
I think tech and the US will continue to do well for a very long time and probably everyone will be better off with 100% N100 in the end.
I still prefer to stay a little more broadly diversified.
You also have much higher volatility due to the often overvalued tech sector.
You have to be able to withstand that.
Also possibly unpleasant at some point in the payout phase. Selling at -20% or even lower in a bear market is certainly no fun.
I think tech and the US will continue to do well for a very long time and probably everyone will be better off with 100% N100 in the end.
I still prefer to stay a little more broadly diversified.
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2Sem.
@Banana_Millionaire With the current composition, however, your MSCI World will easily be -10% if the Nasdaq were at -20%. you are not that much better diversified, in my opinion
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•@Krush82 you're not entirely wrong.
Personally, I'm not invested in the World either.
But you shouldn't forget that the World naturally shifts over time.
If tech or the USA performs less, then it will also be weighted less.
Personally, I'm not invested in the World either.
But you shouldn't forget that the World naturally shifts over time.
If tech or the USA performs less, then it will also be weighted less.
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2Sem.
@Banana_Millionaire Yes, that's true, but by the time the rotation is through, you've been through the full "crash". What are you invested in for diversity reasons?
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