Home
Articles
Photos
Interviews
Forums
New posts
Search forums
Georgia Tech Recruiting
Dashboard
What's new
New posts
New profile posts
Latest activity
Chat
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
General Topics
The Swarm Lounge
General Investing and Economics Discussion - No Politics
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="Deleted member 2897" data-source="post: 427687"><p>I second this, with the twist that you can have your cake and eat it too. About once every year or so, I rebalance my mutual funds to make sure that they stay weighted in the sectors that I feel have the most upside. So if small-cap stocks are significantly under valued compared to large-cap stocks for example, I will leave more money in smaller cap Index funds. Or international or what have you. There are tons of index funds and ETFs. Just be careful if you are getting a little bit off the beaten path, sometimes those investment methods may make use of futures and options, which can add a lot of extra risk you may be unaware of on first glance.</p><p></p><p>Edit: for example, I thought oil was extremely undervalued a couple years ago. So I went into an oil ETF. In order to mimic the price of oil, the ETF made use of futures, etc. That introduces a time-based cost. So yes it trended up and down with the price of oil, but over 2 years oil more than doubled, while the ETF returned about 30% less. For an investment vehicle that on the surface has a tiny management cost, that is surely an expensive avenue!</p></blockquote><p></p>
[QUOTE="Deleted member 2897, post: 427687"] I second this, with the twist that you can have your cake and eat it too. About once every year or so, I rebalance my mutual funds to make sure that they stay weighted in the sectors that I feel have the most upside. So if small-cap stocks are significantly under valued compared to large-cap stocks for example, I will leave more money in smaller cap Index funds. Or international or what have you. There are tons of index funds and ETFs. Just be careful if you are getting a little bit off the beaten path, sometimes those investment methods may make use of futures and options, which can add a lot of extra risk you may be unaware of on first glance. Edit: for example, I thought oil was extremely undervalued a couple years ago. So I went into an oil ETF. In order to mimic the price of oil, the ETF made use of futures, etc. That introduces a time-based cost. So yes it trended up and down with the price of oil, but over 2 years oil more than doubled, while the ETF returned about 30% less. For an investment vehicle that on the surface has a tiny management cost, that is surely an expensive avenue! [/QUOTE]
Insert quotes…
Verification
What jersey number did Joshua Nesbitt wear?
Post reply
Home
Forums
General Topics
The Swarm Lounge
General Investing and Economics Discussion - No Politics
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.
Accept
Learn more…
Top