Quote (dro94 @ Oct 9 2020 06:25pm)
I'm still reluctant to reinvest in global all cap and other index ETFs after divesting from them a few months ago. The long term economic outlook looks bleak, even with a swift recovery in employment governments will be indebted well over 100% of GDP from COVID related expenditure. The resulting fiscal drag will limit growth for a generation.
Therefore, I don't think there's much value in markets overall at the moment. I'll focus investments on some large individual companies that aren't as reliant on macro factors as the market.
Short-medium term lax monetary policy with zero interest rates + endless stimulus means tons of money has to go into equity markets for yield.
Sitting in cash is dumber than going long equity. Look at usd chart. It’s down something like 6% y/y. Meanwhile spy is up 19% y/y.
It’s especially dumb now that we know governments will continue to dilute people’s fiat wealth with so much money printing.
I agree with being selective tho. I have some money in indexes but it’s a small % compared to what I have in medium-large cap individual names.