Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
FYI: People with self-directed brokerage accounts within their retirement plans invested the largest percentage of assets in mutual funds in the first quarter 2018, according to new Charles Schwab report.
I have this feature. I tried to get some answers on options available if I used self-directed option. The response I got was effectively "let me SELL you what we got, when do you want an appointment?". You can guess what my answer was.
I'm sticking to index funds. Don't fret not having self-directed option. Unless you saying the options you have suck most intensely? I have Vanguard index funds available. So shame on me for even bothering to explore self-directed option.
They don't suck most intensely, but I would never choose them outside of the plan. Most of the funds are growth funds but I'm a Value investor. I'd like to move further away from growth considering the recent over-performance, but they only offer two value funds, Large and Small cap, no International value. But they offer a generous match, so I try not to complain. I am also worried about when the tides turn and value makes a comeback. I can't maintain good diversity with the funds provided.
Hmm...I know what you mean. I have some large, mid, small growth funds outside of the index funds in my 401k too, but no value fund at all. Wonder why that is.
Hi @BrianW I'm with the impression that "value" may only find "better" performance with a continued upswing of an economy (U.S. or international). My presumption with this impression is that when growth equity becomes too expensive, but an economy is still moving along nicely; then value equity may find more buyers of the "under priced". The big money will at some point chase the "buy low....value, after having taken profit from the growth area, eh? Value equity attempted a move early this year, but retreated again to favor growth........with a continuing large cap growth remaining in place, BUT with small cap growth gaining the edge throughout the year so far. I may be fully off base with this. Adjustments to my thinking with this are most welcome. Regards, Catch
Well, if we have a 2000-2002 kind of market, value will earn positive returns. Of course, that time and leading up to the financial crisis, "value" basically meant "financial". So we will figure out what it means this time around assuming the same situation comes to pass.
Anyways, like I said I use indexing along with my ANALysis which keeps me invested in market to various degrees or not. I venture outside indexing only if I end up making a sale within time limits so I can't buy again. Then I use long dated target funds. I'm good without either explicit "value" or "growth" or even small/mid/international in my portfolio.
@catch22: I see things as you do regarding 'big money' eventually choosing to move in another direction, presumably to value. I've already seen some movement in small cap value. Because of fund availability I have a considerable amount invested in growth, but I've been careful to re-balance at regular intervals. I think you're on-point.
@VintageFreak: As Mark Twain states 'History does not repeat, but it often rhymes'. I'm also thinking there's a behavioral component as well. People enjoy popular sexy things and in the equity universe, the FANG stocks couldn't be sexier. Many investors were not around during the .com bust, whereas some have just conveniently forgotten. As I've aged, I've tried to control my emotions, especially when investing. I've seen how bad it can get and how quickly it can get there. And popular stocks almost always get pummeled during a downturn. When you think about it, it isn't that difficult to understand why.
Comments
I'm sticking to index funds. Don't fret not having self-directed option. Unless you saying the options you have suck most intensely? I have Vanguard index funds available. So shame on me for even bothering to explore self-directed option.
Good for me I'm indexing I guess.
I'm with the impression that "value" may only find "better" performance with a continued upswing of an economy (U.S. or international).
My presumption with this impression is that when growth equity becomes too expensive, but an economy is still moving along nicely; then value equity may find more buyers of the "under priced". The big money will at some point chase the "buy low....value, after having taken profit from the growth area, eh? Value equity attempted a move early this year, but retreated again to favor growth........with a continuing large cap growth remaining in place, BUT with small cap growth gaining the edge throughout the year so far.
I may be fully off base with this. Adjustments to my thinking with this are most welcome.
Regards,
Catch
Anyways, like I said I use indexing along with my ANALysis which keeps me invested in market to various degrees or not. I venture outside indexing only if I end up making a sale within time limits so I can't buy again. Then I use long dated target funds. I'm good without either explicit "value" or "growth" or even small/mid/international in my portfolio.