https://www.businessinsider.com/5-calls-big-short-michael-burry-passive-investment-bubble-2019-8
Maybe index funds aren’t the answer
I read his article. Doesn’t matter whether index fund is currently overvalued. The investment strategy that pair with index fund is DCA purchasing over at least 10 years (I would advocate forever if the intent is to pass on to your children). The most important characteristic of the S&P index is it won’t become zero which we know nearly every stock does at some point.
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It sounds like he thinks the market is overvalued due to all the money in passive ETFs. That’s a good point but the SPY hike dis higher than the 10-year treasury. If investors sell equities, what are they going to buy instead? There needs to be a viable alternative before people will sell in large numbers.
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I used to watch bloomberg and even listen daily during my travel to office. We have to filter their stuff to know the truth as they are not right even 70%.
Michael J. Burry is an American physician, investor, and hedge fund manager.
Most of the money managers/Hedge fund managers hate index funds as it directly affects their job. When common people easily invest SPY or VOO (best one) with DCA (Dollar cost average), money managers jobs are lost.
Index funds are best for common people who does not squeeze mind to know deep value in stocks. They have low volatility compared to individual stocks.
It is many times proven that a common investor can beat a money manager by buying VOO (or SPY) whenever stock drops.
With zero commission every broker, investors can buy every friday (normal dip time) small amount of VOO (or SPY).
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