I am also a fan of global diversification, but quite honestly, I do not believe that US dominance will diminish over the next few decades. In the end, all world investors would probably be better off with an S&P500.
What I'm actually saying is this:
I would still invest globally, but don't let the weighting drive you crazy.
When sustained weakness emerges, it's a process.
In time, an ETF rebalances by market capitalization quite autonomously and the lump melts by itself.
What I'm actually saying is this:
I would still invest globally, but don't let the weighting drive you crazy.
When sustained weakness emerges, it's a process.
In time, an ETF rebalances by market capitalization quite autonomously and the lump melts by itself.
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@Banana_Millionaire All right, thanks for the assessment. I could also imagine that the EU is currently just a bit of hype, especially in terms of armor, etc.
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@Banana_Millionaire US outperformance is cyclical. It changes roughly every decade. And we have just had 15 years of US outperformance. It would not be unusual if there were another 10-15 lean years.
And while the US share is shrinking due to market capitalization, the MSCI World is also underperforming. But it won't be called underperformance because the MSCIWorld is the benchmark. 😁
And while the US share is shrinking due to market capitalization, the MSCI World is also underperforming. But it won't be called underperformance because the MSCIWorld is the benchmark. 😁
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•@Epi that would actually be a dream 😁
There are so many great companies that I would want to buy.
I'd like to see a decade of weakness.
Maybe the feeling is deceptive, but I think the market has also changed a bit over time.
Simply because of the tech dominance, which will certainly continue for a while.
Maybe it's just beyond my imagination, but I can't imagine how MAG7s, for example, will be displaced. Especially now, when in my opinion we are still at the beginning of the AI age.
These companies have such a gigantic head start that I find it hard to imagine other companies at the top in the near future 😅
But with my ~3 years of stock market experience, I still have eggshells on my head and am happy to be proven wrong 🙂
There are so many great companies that I would want to buy.
I'd like to see a decade of weakness.
Maybe the feeling is deceptive, but I think the market has also changed a bit over time.
Simply because of the tech dominance, which will certainly continue for a while.
Maybe it's just beyond my imagination, but I can't imagine how MAG7s, for example, will be displaced. Especially now, when in my opinion we are still at the beginning of the AI age.
These companies have such a gigantic head start that I find it hard to imagine other companies at the top in the near future 😅
But with my ~3 years of stock market experience, I still have eggshells on my head and am happy to be proven wrong 🙂
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@Banana_Millionaire Take a look at history - you can make up for a lack of experience. 80s information technology, 90s internet - both times the technology was indeed transformative and there were many great companies. Nevertheless, only a few of them made it through the decade. Or do you remember Hewlett Packard, Xerox, AOL and Yahoo - all Mag7 from back then?
A very likely scenario is that the Mag7 companies consolidate their valuations, some lose their supremacy to newcomers, the focus of investors shifts to the application side. Those Mag7s that are able to adapt their business model correctly in 10 years' time will continue to operate. The others will be taken over or disappear into insignificance.
A very likely scenario is that the Mag7 companies consolidate their valuations, some lose their supremacy to newcomers, the focus of investors shifts to the application side. Those Mag7s that are able to adapt their business model correctly in 10 years' time will continue to operate. The others will be taken over or disappear into insignificance.
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•@Epi Thank you for your assessment. I think you will be right in the long term, but I don't think the air is out yet.
The first indicator of slower growth is certainly already in place for some with the introduction of a dividend.
The first indicator of slower growth is certainly already in place for some with the introduction of a dividend.
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