Will large cap U.S. growth stocks continue to outperform because they're the best companies?
Will large cap U.S. growth stocks underperform because of high valuations?
Historically, foreign equities have experienced periods of outperformance vis-a-vis U.S. equities.
Are these cycles a thing of the past and are things really different this time?
https://awealthofcommonsense.com/2024/12/the-most-hated-stocks-in-the-world/
Comments
Why high Div stocks are not a good market barometer? The high tech revolution changed it. For decades now tech companies leads the world in innovation and creating wealth. These companies pay no-lower div.
Quote from the article "Diversification is an admission of ignorance about the future."
Buffett said it a lot better "Diversification is protection against ignorance. It makes little sense if you know what you are doing".
So the question remains do you continue to ride large caps (mainly Tech) indefinitely, or do you see a rotation back to other sectors. Large cap Tech ("Magnificent Seven") as market leaders - current trend or new normal?
Who is still buying value?
It makes little sense if you know what you are doing'".
This attribution lacks proper context.
Below is an actual quote from a Warren Buffett speech to MBA students.
"If you are not a professional investor; if your goal is not to manage in such a way that you
get a significantly better return than the world, then I believe in extreme diversification.
I believe that 98 or 99 percent —maybe more than 99 percent—
of people who invest should extensively diversify and not trade.
That leads them to an index fund with very low costs.
All they’re going to do is own a part of America.
They’ve made a decision that owning a part of America is worthwhile.
I don’t quarrel with that at all. That is the way they should approach it."
financinglife.org/learn-how-to-invest/warren-buffett-on-diversification/
or do you see a rotation back to other sectors.
Large cap Tech ('Magnificent Seven') as market leaders - current trend or new normal?"
This is the $1,000,000 (USD) question!