23 min
Episode #1: The problem with diversified index funds during asset bubbles Red Haven Advisors
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- Inversión
In the event of a market downturn, will diversification protect your portfolio?
In this episode of the Red Haven Advisors podcast we discuss why diversified index funds are not immune to a market downturn. We discuss how large cap technology stocks are now a key driver of S&P 500 performance and how their current valuations make many cap weighted index funds a risky bet. Beware of FANGMAN (FB, AAPL, NFLX, GOOG, MSFT, AMZN, NVDA).
Red Haven Advisors urges listeners to understand what assets they own. Listeners are encouraged to investigate the individual holdings within the funds listed on their account statements. Style Box investing (ie, large cap growth, small cap value, etc.) is not sufficient to fully understand portfolio risk.
Finding fund holdings can typically be accomplished using a search engine. For example, to find the holdings of the popular SPDR S&P 500 ETF enter “SPY holdings” into a search engine (SPY is the ticker). The results show that State Street Global Advisors (ssga.com) is the fund’s trustee. Following the search engine results to the trustee’s website provides a tab labeled “Holdings”. The Holdings tab gives a current listing for each security owned by the fund.
Understanding what you own has never been more important. Diversification alone is not enough to protect against losses stemming from overvalued assets. Discuss valuation with your Financial advisor today or send us an email at info@redhavenadvisors.com.
Thank you for listening.
Referenced Material
The End Game Podcast Ep. 3 - Mike Green
Bill Fleckenstein and Grant Williams welcome a towering intellect in the shape of Mike Green of Logica Advisors, to discuss the role passive investing may have to play in The End Game.
https://ttmygh.podbean.com/e/teg_0003/
In the event of a market downturn, will diversification protect your portfolio?
In this episode of the Red Haven Advisors podcast we discuss why diversified index funds are not immune to a market downturn. We discuss how large cap technology stocks are now a key driver of S&P 500 performance and how their current valuations make many cap weighted index funds a risky bet. Beware of FANGMAN (FB, AAPL, NFLX, GOOG, MSFT, AMZN, NVDA).
Red Haven Advisors urges listeners to understand what assets they own. Listeners are encouraged to investigate the individual holdings within the funds listed on their account statements. Style Box investing (ie, large cap growth, small cap value, etc.) is not sufficient to fully understand portfolio risk.
Finding fund holdings can typically be accomplished using a search engine. For example, to find the holdings of the popular SPDR S&P 500 ETF enter “SPY holdings” into a search engine (SPY is the ticker). The results show that State Street Global Advisors (ssga.com) is the fund’s trustee. Following the search engine results to the trustee’s website provides a tab labeled “Holdings”. The Holdings tab gives a current listing for each security owned by the fund.
Understanding what you own has never been more important. Diversification alone is not enough to protect against losses stemming from overvalued assets. Discuss valuation with your Financial advisor today or send us an email at info@redhavenadvisors.com.
Thank you for listening.
Referenced Material
The End Game Podcast Ep. 3 - Mike Green
Bill Fleckenstein and Grant Williams welcome a towering intellect in the shape of Mike Green of Logica Advisors, to discuss the role passive investing may have to play in The End Game.
https://ttmygh.podbean.com/e/teg_0003/
23 min