Would you share which value funds you do hold and why?It is not at all clear that this risk is not compensated for? We know stock markets are highly volatile. This is one of the risks that cause that volatility.From a german blog article:
The level of concentration is of concern. However it is hardly unique -- railway companies in the early 1900s, oil & gas stocks in 1980, Tech-Media-Telecom in 2000. It's an impossible task to "call" when things change - but the DeepSeek thing showed you how sentiment can turn on a dime. In contrast to 2000 these companies have monopolistic business models and incredible financial strength. Arguably public policy (in Washington DC) is going entirely their way right now.
(Nisiprius has some posts about stock market history and whether this concentration is unique, if you search)
You have to take a personal view as to whether you think this "AI bubble" is a bubble and has gone too far? The outperformance of the US market has largely been about these stocks, in the last year or two in particular.
By holding the global equity portfolio, you dilute exposure to those companies relative to an S&P500 or Vanguard Total Stock Market fund. It's frightening how often people come on here wanting to overweight USA.
I hold various value funds as well. However that dilutes exposure to the upside - it has really hurt the last couple of years.
Statistics: Posted by Fireishere — Sun Mar 02, 2025 2:27 am — Replies 6 — Views 3318