Introduction Remember in 2009 when fund managers/advisors were telling their clients that emerging market funds were the best places to leave your money? Does anyone else remember the great returns that emerging economies were generating investors from 1999-2009? If you do, you’d probably remember an advisor telling you or your client to take a position within an emerging market fund, what was the rationale? Past returns. However, fast forward 11 years later and the S&P 500 dominated the international indices, particularly emerging markets. It seems we are at a similar scenario today with the S&P 500 and the rise in popularity of “passive” investing. I completely understand the appeal, financial advisors aren’t necessarily ethical or smart, and quite frankly financial institutions over charge for their investment products. Why not just buy an ETF, pay a fraction of the price, do no work, and watch your money compound at 15% annually. It’s a money COMPOUNDING CHEAT CODE! Unfortunately all good things must come to an end as the S&P 500’s dominant run could be in jeopardy and the promise for above average returns may not necessarily be fulfilled.
Why You Should Stay Clear From The S&P 500
Why You Should Stay Clear From The S&P 500
Why You Should Stay Clear From The S&P 500
Introduction Remember in 2009 when fund managers/advisors were telling their clients that emerging market funds were the best places to leave your money? Does anyone else remember the great returns that emerging economies were generating investors from 1999-2009? If you do, you’d probably remember an advisor telling you or your client to take a position within an emerging market fund, what was the rationale? Past returns. However, fast forward 11 years later and the S&P 500 dominated the international indices, particularly emerging markets. It seems we are at a similar scenario today with the S&P 500 and the rise in popularity of “passive” investing. I completely understand the appeal, financial advisors aren’t necessarily ethical or smart, and quite frankly financial institutions over charge for their investment products. Why not just buy an ETF, pay a fraction of the price, do no work, and watch your money compound at 15% annually. It’s a money COMPOUNDING CHEAT CODE! Unfortunately all good things must come to an end as the S&P 500’s dominant run could be in jeopardy and the promise for above average returns may not necessarily be fulfilled.