i watched mr 1m65 and chris tan from providend talk about s&p500 allocation
chris is partially correct. if you suddenly need the money and its all in 1 market and that market is down, then how?
then obviously, you are fucked
so he's right? not really. you are just a lousy money manager of your own money
the goal of an investor should not be to generate a smooth 45 degree linear net worth chart so that at any time if you quit game, you are in profit
a good investor should understand that sometimes, markets go down, and when that happens, you need to hold enough liquid cash (not fixed deposits, not tbills, not bonds) so that you dont need to dip into your underperforming assets to pay for expenses and just tahan the volatility
people like chris are old school and have the philosophy that fundamentals and value are what that is truly important to determine asset prices
that used to be the correct way to think about investing
unfortunately it is 2024
nobody gives a fuck about fundamentals
the only thing that matters is FLOW
where is the money flowing to? msci world stocks? em stocks? lmao, no
when was the last time you bought a large cap in europe or japan? ya, the answer is never
so if you are not buying it, then who is buying it?
the sad answer is: only other suckers that think "world" or "em" or "value" can suddenly outperform for some unknown reason
compare to the s&p500
millions of people blindly DCA-ing and nobody gives a fuck about P/E ratio, fed meetings, interest rates or inflation rates
new month? buy
new month? buy
new month? buy
new month? buy
new month? buy
new month? buy
new month? buy
new month? buy
if you think your "fundamentals" can win over the flows of money from my infinite army of monkeys, good luck to you
if you think about "who is the next sucker going to be" to buy your assets, you will quickly realize that only the us stock market has endless supply of future flows that are going to keep on coming, rain or shine. other markets? look at SGX and make your own conclusion
imagine advising someone to dca into the sti etf instead of the s&p500
either you are uneducated or you fucking hate that person and want them to be poor
or imagine doing that yourself
lol
the s&p500 will constantly outperform almost everything for a very long time
not because its 500 companies and the usa are fundamentally good investments and a good country
but because global finance is structured in a way that the s&p500 will naturally keep on sucking in money
at this point, it is almost like gravity
why try to fight it? you can instead accept it and go along with it
every single AI powered optimized allocation rebalancing diversified fundamentally driven factor value investing strategy will lose to
a brainless monkey (me) that just simply whack 100% all in s&p500
don't believe me? come fight against me and my infinite monkey army
