My Family Savings Story 56
~ What are the weaknesses of global stocks? Volume~
There are things you should definitely know about the global stock index, which is regarded as a royal investment destination. Don't invest in global stocks without knowing it. That's the story this time.
I said, “That's a lie, isn't it? I can't believe there is such a thing in global stocks...”
I was like “... what happened”
Bride “What are you doing? Lumpy alone”
I said, “Hey, there's one serious weakness in global stocks. You didn't know that a moment ago, I was a little bit beaten.”
Bride “Eh!! Are there any weaknesses in global stocks? Are there any weaknesses in such a perfect investment destination?”
I said, “There are no weaknesses in any investment destination”
I said, “First, let's review the characteristics of global stocks...”
[Characteristics of global stocks] Diversified investments are possible in 80 to 90% of stocks listed worldwide. The current composition ratio of global stocks is 90% for developed country stocks and 10% for emerging market stocks. Of the investment ratios, the most common ones are US stocks, with a composition ratio of 60%. In particular, the ratio of American high-tech companies called GAFA accounts for a large share.
[Advantages of global stocks] Since stocks of global stocks can be diversified in conjunction with market capitalization, the advantage of the global stock index is that when the total market value of Indian stocks rises, the ratio of Indian stocks increases, and when the ratio of US stocks falls, the ratio of US stocks is automatically rebalanced, etc.
I mean “that's right”
Bride: “I see. Somehow, I found out. The more I listen to it, the more it seems like the perfect investment.”
Bride “Do you really have any weaknesses?”
I said, “That's what it is!”
[What are the weaknesses of global stocks?] It is the index with the most diversified investment in stock investment, but since it is the index with the most diversification effect, it is by no means the investment destination with the most return. For example, if the return of the US stock index and NASDAQ100 is 20% and the return of the S&P 500 is 17%, the return on global stocks will be reduced to 13%.
I said, “This is the weak point of global stocks, isn't it?”
Bride: “I see. Dispersion works best, so you definitely can't be number one.”
Bride “That's kind of ironic, isn't it?”
Bride “It's like idols who are loved by everyone can't get married no matter how old they are”
I said, “What is that example. Are you saying you can't be someone's number one because you're loved by everyone? But that's funny”
I said, “SNS is developing now, so it's easy to compare with other investment destinations, so be careful not to get distracted”
I said, “First of all, it's impossible even for professionals to always be able to concentrate on investing in the investment destination with the most return.”
I said, “No matter how good a guy is, he always has weaknesses. If you don't know that, you won't be able to keep dating.”
Bride “Yes”
In the first week of March, my family's assets were 11.43 million yen
My family's savings are still going on
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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NagiSan : That's amazing!
It's easy to understand, interesting, and has the essence!
I'm looking forward to next time too ♪
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")
Thank you very much
徒然草子 : If the shock somehow comes, how much impact will each drawdown have?
That's because even the S&P 500 will melt in half.
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")
And there are fewer returns than US stocks.
![[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
One of the few advantages, and the biggest advantage, is that the distribution is effective at the largest level in the world. I was recommending global stocks, but I watched global stocks on DISS
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
Warren Buffett's “Nobody Wants to Get Rich Slowly”
No matter what, we end up managing our assets from a short-term perspective.
Long Term, Diversification, and Accumulation
Don't forget the basics!
Thank you very much.
リートん投資家 OP NASDAQ100Love : Thank you very much for your nice comment (T_T)