The daddy of indexing, Jack Bogle, founder of Vanguard Asset Management, has said that trying to pick a fund that will outperform the stock market over the long term is, to use Cervantes’ phrase, “looking for a needle in a haystack.” Accordingly, his proposal and other defenders of the common index are not about looking for such needles, but about the fact that the investor buys the whole haystack. Photo: Parlog Andrei, Scanpix
One wonders how much diversification can be found in a common market index fund these days.
Shares of the world’s largest companies are on fire, where the US market has seen a rise for five consecutive months. Findings that a large part of this rise is due to the performance of the stocks of a handful of giant companies – mostly from technology-related industries – are no longer news. In recent weeks, the growth of the market, with the involvement of an increasingly expensive mass of investors, has become wider. That said, the fact that some companies have had an outsized influence on where the major stock indexes have gone this year doesn’t change anything yet.
2023-08-03 06:50:00
#buying #stack #hay #weird
