Market Philosophy

[Harvey]

It's amazing to me how disconnected the indexes have become from each other. Yesterday's numbers, big established companies up, smaller (still big) innovators down:

I see this a lot, more often than I used to. In some ways it means when you hold a small part of the entire market (which I do) you're more diverse.

 

[DomB]

And you have the add

It's amazing to me how disconnected the indexes have become from each other. Yesterday's numbers, big established companies up, smaller (still big) innovators down:

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I see this a lot, more often than I used to. In some ways it means when you hold a small part of the entire market (which I do) you're more diverse.

And you have the added bonus of not having to spend any brain energy on figuring out why. I am not sure I could if I tried!

 

[MC2]

If you are just looking at those indices, feel like the overall story is pretty simple: tech stocks did well when we were all stuck at home & now that it looks like we’re not going to be stuck anymore, traditional industry will have a big comeback.

I always liked the Russell 2K index better than Nasdaq/Dow/S&P anyway.

 

[Harvey]

If you are just looking at those indices, feel like the overall story is pretty simple: tech stocks did well when we were all stuck at home & now that it looks like we’re not going to be stuck anymore, traditional industry will have a big comeback.

I always liked the Russell 2K index better than Nasdaq/Dow/S&P anyway.

That was just something I got in my email.

I care most about TSM.

 

[DMC_Hunter]

When I joined Salesforce a couple years back I of course got a ton of stock. It's up and down. Gonna hold onto it - I've never owned stocks outside of the companies I've worked for. But damn it frustrating seeing our numbers so good and yet the stock floundering.. just venting...

 

[Harvey]

No funds?

 

[x10003q]

When I joined Salesforce a couple years back I of course got a ton of stock. It's up and down. Gonna hold onto it - I've never owned stocks outside of the companies I've worked for. But damn it frustrating seeing our numbers so good and yet the stock floundering.. just venting...

It is risky to have your income and an important part of your investments tied up in one company. You probably should lighten up on your Salesforce stock.

 

[DMC_Hunter]

It is risky to have your income and an important part of your investments tied up in one company. You probably should lighten up on your Salesforce stock.

Well they gave it to me..

I have 401ks with stock as well

 

[DomB]

If you are just looking at those indices, feel like the overall story is pretty simple: tech stocks did well when we were all stuck at home & now that it looks like we’re not going to be stuck anymore, traditional industry will have a big comeback.

I always liked the Russell 2K index better than Nasdaq/Dow/S&P anyway.

The only US index I use is the Vanguard Total Market, which is market cap weighted. Basically I get 1/4 Russell 2K and 3/4 S&P 500. I will frankly admit that I do that because it is the closest thing I can buy to buying the entire economy without putting any effort into thinking. Yes the growth stocks are in Russell 2000.

 

[Harvey]

The only US index I use is the Vanguard Total Market, which is market cap weighted. Basically I get 1/4 Russell 2K and 3/4 S&P 500. I will frankly admit that I do that because it is the closest thing I can buy to buying the entire economy without putting any effort into thinking. Yes the growth stocks are in Russell 2000.

The dynamic with the indices that @MC2 pointed out makes complete sense. But I'd never be able to figure that out soon enough to make money on it. So I'm total market too.

For me, the question is what strategy gives you the best chance to "have enough." It's all a guess, including how much is enough.