Index Fund Myths, & 3 Funds That Buy EVERYTHING

Happy Monday, wealthy people! 

It seems like the Instagram algorithm keeps pushing the same content on me from finance influencers who advise: “only buy an S&P 500 index fund.”

“Don’t bother picking stocks" they preach, over and over again, like a group of fervent priests praying to a money God.

Ahem… Let’s dissect these statements for a moment. ***takes a sip of coffee and leans in.***

• The S&P 500 index only tracks:

  • Stocks in the US (Yes, in this ONE market you are likely better off using index funds… but how about investing in the rest of the world?)

  • Large US stocks (How about investing in small stocks?)

• What if you buy index funds but ALSO keep a small % of your portfolio for individual stock ideas when you find amazing opportunities?

• Understanding stocks is an incredible skill to have.

  • After all, index funds invest in… you guessed it… stocks 😂.

  • Stock picking is about understanding business models. A handy skill that applies whether you’re a business owner or an employee.

  • When you understand financial statements, you can understand at a deeper level how well your own employer is faring. (And any potential layoffs)

  • It gives you the confidence to find investment opportunities anywhere in your life, including angel-investing in your cousin’s fabulous start up.

  • Bonus: it enables you to finally engage Uncle Greg at Christmas dinner when he inevitably drives the conversation to the latest stock’s EBITDA.

In today’s email:

👉 Stock Market Update - Market No Longer Greedy

👉 Fund Corner - 3 Funds that Buy EVERYTHING

Grab your latte and let’s get started!