Hmm defensives vs. cash in the event of a market crash? I'm leaning toward the latter for optionality but def see the appeal of the former given how cheap
Indeed, agreed, defensive stocks will act as a buffer in equity portfolios but from an asset allocation standpoint I would say bonds are better for a deflationary/recession downturn or even commodities in the event of inflation resurgence
Really interesting point about how pasive investors are basicaly sleep walking into tech heavy portfolios without realizing it. The charts showing defensive allocations at record lows is pretty eye opening. I wonder how many people in index funds even know thier portfolio is this concentrated? Great anaylsis.
Hmm defensives vs. cash in the event of a market crash? I'm leaning toward the latter for optionality but def see the appeal of the former given how cheap
Indeed, agreed, defensive stocks will act as a buffer in equity portfolios but from an asset allocation standpoint I would say bonds are better for a deflationary/recession downturn or even commodities in the event of inflation resurgence
Really interesting point about how pasive investors are basicaly sleep walking into tech heavy portfolios without realizing it. The charts showing defensive allocations at record lows is pretty eye opening. I wonder how many people in index funds even know thier portfolio is this concentrated? Great anaylsis.