s+p500 or all world index if investing long term?

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flyingfolly

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If you're in your late 20s, what should you be investing in? Is s+p500 a little risky of the USA fails in the long term?
 
flyingfolly said:
If you're in your late 20s, what should you be investing in? Is s+p500 a little risky of the USA fails in the long term?
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Not enough info for anyone to give an accurate answer - what should you reinvesting in depends so much on your very personal circumstances but yes, investing all your pot into one country based on its recent success is a riskier strategy than diversifying globally. "All world" covers a lot of investments - some good and some bad though!!
 
S and p 500 is too dispersive to my view even if it always increases in value because we are talking multinationals here. Google "fastest growing sectors" and think about society in 30 years from now. Then buy stocks in those sectors and keep strong by keeping buying when there are corrections or depressions. I just don't trust funds and their hidden fees... I am a fool.com follower and I keep thanking them for the advice I keep getting: they know where the big money goes... Impressive to my view...
 
I am a fool.com follower and I keep thanking them for the advice I keep getting: they know where the big money goes... Impressive to my view...
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The Fool does give out some good advice, but they play their own games too, particularly when it comes to many of the financial products they sell. If they were required to do performance and attribution in the same manner as the funds they would come looking very pedestrian.
 
LoveTrees said:
S and p 500 is too dispersive to my view even if it always increases in value because we are talking multinationals here. Google "fastest growing sectors" and think about society in 30 years from now. Then buy stocks in those sectors and keep strong by keeping buying when there are corrections or depressions. I just don't trust funds and their hidden fees... I am a fool.com follower and I keep thanking them for the advice I keep getting: they know where the big money goes... Impressive to my view...
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There’s so much wrong with the above post, I’m not sure where to start…
 
flyingfolly said:
If you're in your late 20s, what should you be investing in? Is s+p500 a little risky of the USA fails in the long term?
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If the USA fails in the long term, we are all up the river without a paddle.

Both are equity funds, one with 500 of the top US companies, which at present has about 20% in 5 companies. The other is 1,600 companies in developed world equities, with small and medium sized companies as well as large cap. It still holds c. 60% in US equities.

They also have different criteria for qualifying to be in their index. The MSCI World Index held Tesla way before the S&P 500 did.

I am 100% S&P 500. I buy and forget.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Back in 1989 Japan had the largest stock market in the world by market capitalisation.

More than 30 years later, the Japanese stock market is still well below its 1989 high.

IMO it is unwise to invest in the stocks of companies in any single country - including the USA.

We simply don't know what companies or regions will outperform in the future so it makes sense to invest globally.
 
Steven Barrett said:
If the USA fails in the long term, we are all up the river without a paddle.
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No economy can dominate the globe forever. While the US is unlikely to 'fail' it may mirror the situation of the UK going from a position of world dominance to struggling mid table in a century. I would suggest that the US has recently started that relative decline, though the vibrancy of its economy is by no means exhausted. So rather than up the river without a paddle I would say we are in for some choppy waters.

The US stock market unlike the Japanese or indeed the Chinese until recently does not reflect the US economy alone, because most major US companies are in effect global. An investment in the S&P is an investment in the global economy. Apple designs in the US, builds in Tiwan and China and sells everywhere.

When I was 20 the Soviet Union ruled half the world and seemed likely to last for generations. I am not suggesting the US will go the way of the Soviet Union, I am suggesting that change happens.

I vote a global allocation.
 
Sarenco said:
We simply don't know what companies or regions will outperform in the future so it makes sense to invest globally.
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There are two possibilities: don't put all your eggs in one basket, or put your eggs in one basket and mind the basket....

I prefer to mind the basket.
 
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