Your points are a good argument for diversification across multiple asset classes. As an argument against indexing, I think they are rather anemic.
“Your points are a good argument for diversification across multiple asset classes. As an argument against indexing, I think they are rather anemic.”
Not surprising.
You already have a belief system, confirmed by recency bias and supported by the support of hundreds of billions of Central Bank dollars that are preventing serious declines.
This will work until it no longer works. Up until that time, your bias will be reconfirmed. You will be pleased with your gains.
If very fortunate, the Central Banks and (in the final stages) the IMF will be able to keep it up for a couple more years tops.
Unfortunately, investors like you will no longer have the skills to use a steering wheel. After that, many people will remember too late that asset preservation means something as they lose most of what they have. Not 10%. Most, meaning far more than half.
May you not be among them. I do encourage you to stop back and update your thread when we reach that point.
As for diversification among asset classes... Just when you need diversification to help the most, if fails the worst. They all die like rats in a corner.
Either you will eventually learn to steer, or you will hire someone to do so. The alternative is unthinkable.