TSLA
Tesla
-- 410.440 NVDA
NVIDIA
-- 144.470 RGTI
Rigetti Computing
-- 19.0200 CRNC
Cerence
-- 19.330 PLTR
Palantir
-- 79.890 
Our Family's Wealth Accumulation Story 56
~ The Weakness of Global Stocks? ~
There are things that you absolutely must know about the global stock index, which is considered a traditional investment destination. Without knowing that, you should not invest in global stocks. This time, it's that kind of story.
Me: "Is it a lie? Something like this in the global stock index..."
Me: "...What the heck."
Wife: "What's wrong? Mumbling to yourself."
Me: "Hey, there's a major weakness in global stocks. Just a while ago, I found out about it and was a bit taken aback."
Wife: "What! There's a weakness in global stocks? Is there a weakness in such a perfect investment destination?"
Me: "There's a weakness in every investment destination."
Me: "First of all, let's review the characteristics of global stocks..."
【Global stock characteristics】Diversified investment is possible in 80-90% of stocks listed worldwide. The current composition of global stocks is 90% developed country stocks and 10% emerging market stocks. Among the investment ratios, US stocks have the highest composition ratio of 60%. In particular, the proportion of US high-tech companies known as GAFAs is high.
【Advantages of global stocks】Diversified investment is possible as the stock prices of global stocks are linked to market capitalization. If the market capitalization of Indian stocks increases, the proportion of Indian stocks can be increased, and if the proportion of US stocks decreases, the proportion of US stocks can be reduced, automatically rebalancing the portfolio. This is the advantage of the global stock index.
Me: "That's what I mean."
Wife: "I see. Somehow, I already knew. The more I hear, the more it seems like the perfect investment."
Wife: "Are there really no weaknesses?"
Me: "Well, there is one..."
【Weaknesses of global stocks】While it is the most diversified index in stock investments, it is also the index that never becomes the most profitable investment. For example, if the return of the US stock index, NASDAQ100, is 20% and the return of the S&P500 is 17%, the return of global stocks decreases to 13%.
Me: "This is the weakness of global stocks."
Wife: "I see. Because it's the most diversified, I definitely can't be the best."
Wife: "Kind of ironic, isn't it?"
Wife: "It's like an idol who is loved by everyone but still can't get married no matter how old they are."
Me: "What's that analogy about? Are you trying to say that because you're loved by everyone, you can't be someone's number one? But it's funny."
Me: "Nowadays, because social media is so advanced, it's easier to compare to other investment choices, so I have to be careful not to get distracted."
Me: "In the first place, even for professionals, it's impossible to always concentrate on the investment with the best returns. It's just not reasonable."
Me: "No matter how talented someone is, there will always be weaknesses. If you don't know that, you won't be able to continue the relationship."
Wife: "That's right."
In the first week of March, our household assets were 11.43 million yen.
Our savings at home continue to grow.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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NagiSan : That's amazing!
リートん投資家 OP NagiSan : Happy comment![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
徒然草子 : If the shock somehow comes, how much impact will each drawdown have?
リートん投資家 OP 徒然草子 : Thanks for commenting
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
It probably depends on the details of the crash, but the decline should be higher for global stocks than for US stocks. Because developed country stocks and emerging market stocks other than the US have high risk![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
徒然草子 : Since 2007, we have been accumulating MSCI Kokusai (developed country stocks) with DC pensions. The Lehman shock came at the beginning of savings, but until now the average annual interest rate has been around 8%.
リートん投資家 OP 徒然草子 : I see![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
NASDAQ100Love : Weaknesses of global stocks
リートん投資家 OP NASDAQ100Love : Thank you very much for your nice comment (T_T)