In which ETFs should I invest?
- Thread starter Booooks
- Start date
- Mar 30, 2018
- 12,094
- 14,361
List some names and options then we can see and recommend you
Differrus
Junior Member
- Jan 3, 2018
- 169
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Central-east Europe and Emarging markets have decent valuation right now. Also I think it's good idea to invest 1/4 portfolio in platinium/palladium/silver. Russian market is pretty cheap although it really went up in last years (still price of their solid companies is nothing compered to US market valuation).
I would recommend investing in companies that have solid basis and reasonable valuation instand of GROW ones (tech etc. that are overpricced). As the recession is probably coming i would stay away from companies really popular companies and car manufacturers, as they take the hit first usually.
If you want only ETFs invest in ones which porfolio has companies with low P/E and high dividend over years.
Oh and don't bother with active ETFs, they not only have usually worse results than passive, but also their cost is way higher
IG Professor
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- Feb 22, 2017
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investopedia.com
redblackhat
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- Jan 15, 2014
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Does ETF fund own real assests (companies stock)?
I can only repost something that I already wrote to this topic:
Hi,
i am a successful stock investor for around 20 years, so here is my take:
NEVER invest in Index Funds. It is the biggest misconception nowadays, because of financial bloggers and internet "experts".
1) The first problem with Index Funds is, that you automatically buy a lot of badly run companies. This is a waste of money when at the same time you can educate yourself on how to value different companies. With index funds you invest without doing the research just because some guys on the internet said so. You put your money blindly in stocks, ignoring the price and the fundamentals.
Oftentimes Warren Buffet gets misquoted on this topic. You hear "Buffet said, that Index Funds are the way to go as a small investor". That is just one part of his quote. The actual quote is "Investors are hardly able to match the performance of the benchmark index and usually loose more money that they make. Therefore it is smarter for them to just buy an index funds, so they can a least match the benchmark."
Is is smarter when your only option is not to learn and lose money. But if you have the option to learn how to pick stocks, then it is a stupid idea.
2)The second problem with index funds is that they are promoted heavily to retail investors that are lazy and want an easy way to make money. We all know how that usually ends. The last 10 years we had bull market where you could make decent money with index funds, but what will happen when a crisis and a recession hit the market? All those "Index Funds are the way to go" investors will start panic selling when they see the prices drop. We had this scenario in the late nineties. Dot com stocks were heavily promoted to mom and pop investors through financial "experts" and media. And they bought disregarding the fundamentals. NEVER go with the masses.
3)The third problem is how some funds are built. When a funds is built of companies by "market capitalization", you have even more artificial inflation of prices. Lets say a funds consist of five companies, four of them take due to their size 40% (10% each) of the fund and the fifth takes 60%, what happens when you dollar cost average into it? 60% of your money go automatically in the largest company inflating it price even more. Not a smart way to invest.
If you want to know more about how to invest successfully let me know and write me a message. I think i can't do this yet, because i am new to this forum. And if there is interest and feedback to my post, i can write a general article about how to value companies properly and which metrics are important and which not.
Hi,
i am a successful stock investor for around 20 years, so here is my take:
NEVER invest in Index Funds. It is the biggest misconception nowadays, because of financial bloggers and internet "experts".
1) The first problem with Index Funds is, that you automatically buy a lot of badly run companies. This is a waste of money when at the same time you can educate yourself on how to value different companies. With index funds you invest without doing the research just because some guys on the internet said so. You put your money blindly in stocks, ignoring the price and the fundamentals.
Oftentimes Warren Buffet gets misquoted on this topic. You hear "Buffet said, that Index Funds are the way to go as a small investor". That is just one part of his quote. The actual quote is "Investors are hardly able to match the performance of the benchmark index and usually loose more money that they make. Therefore it is smarter for them to just buy an index funds, so they can a least match the benchmark."
Is is smarter when your only option is not to learn and lose money. But if you have the option to learn how to pick stocks, then it is a stupid idea.
2)The second problem with index funds is that they are promoted heavily to retail investors that are lazy and want an easy way to make money. We all know how that usually ends. The last 10 years we had bull market where you could make decent money with index funds, but what will happen when a crisis and a recession hit the market? All those "Index Funds are the way to go" investors will start panic selling when they see the prices drop. We had this scenario in the late nineties. Dot com stocks were heavily promoted to mom and pop investors through financial "experts" and media. And they bought disregarding the fundamentals. NEVER go with the masses.
3)The third problem is how some funds are built. When a funds is built of companies by "market capitalization", you have even more artificial inflation of prices. Lets say a funds consist of five companies, four of them take due to their size 40% (10% each) of the fund and the fifth takes 60%, what happens when you dollar cost average into it? 60% of your money go automatically in the largest company inflating it price even more. Not a smart way to invest.
If you want to know more about how to invest successfully let me know and write me a message. I think i can't do this yet, because i am new to this forum. And if there is interest and feedback to my post, i can write a general article about how to value companies properly and which metrics are important and which not.
That’s a really interesting way to see it! I‘ll send you message
I will check this site out, thanks
Why should I invest in silver etc.?
industryplant
BANNED
- Nov 13, 2018
- 168
- 77
None. How old are you? I mean EFT’s and stocks are old school? Invest into crypto, or gold itself.
why should I invest in gold or crypto?
industryplant
BANNED
- Nov 13, 2018
- 168
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both are simply a lot more promising than the stock market, and index funds. i solely invest in crypto for a big ROI, on the other hand I invest into gold for stability. can’t go wrong with good crypto projects, and precious metal.
Differrus
Junior Member
- Jan 3, 2018
- 169
- 46
Because it's when inflation is going up is usually when natural resources shine, as this is universally thought to be safe way to preserve value (it not always is - but nothing is certain in this life but for taxes and death). And considering how much money FED prints right now they are planning to go out of recession by inflation rather than major financial crisis like in the past (in my opinion most stock won't dive more than 25-35% this time).
Oh and one more thing: NEVER EVER EVER take advice from stranger from internet. Consider their advice (mine as well) as a kind of direction on what should you read more about
Lemilion
Registered Member
- Feb 1, 2020
- 70
- 17
@himigis what’s a good alternative to ETFs?
I have been told ETFs are good for someone who doesn’t understand fundamentals well and that stock picking is dangerous. What do you think about that? Anyway I would really like to know more about your ideas if you can pm me, or make a good post about investment. Thanks.
I have been told ETFs are good for someone who doesn’t understand fundamentals well and that stock picking is dangerous. What do you think about that? Anyway I would really like to know more about your ideas if you can pm me, or make a good post about investment. Thanks.
Hi, thanks for the question.
First of all, stock picking is dangerous if you dont understand how to value a company. You can minimize that risk by educating yourself. Start with "The little book that beats the market" from Joel Greenblatt, its a good introduction. If you want further information from investors who have a proven track record, then check out the books from Peter Lynch and Philip Fischer.
ETFs are so widespread because they offer people the shortcut, where you dont have to do any learning and research. And from IM most here should know that it ends badly.
So instead of investing in the Dow Jones ETF, take a look at every company thats in that index, pick the better ones and try to avoid the bad ones.
I think in one post i cant make everything clear, it would be more a series of articles. I keep that in mind. Its not only stock picking, but also how to build a portfolio where you can sleep well at night, without worrying about fluctuations.
Hope that helps.