Comments by "JP 72" (@739jep) on "Investing in the S\u0026P 500" video.

  1. That’s not what he’s doing in this video , and the exact opposite of what he recommends on this channel.
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  2. GDP growth is irrelevant to the conversation. Your returns are based on what you pay in relation to future profits , not what those future profits are. America could still be successful in terms of economic growth and could still experience mediocre stock market performance. (Changing investor attributes towards risk , increase competitive , share dilution to finance future projects etc ) Nobody knows what any market will do and that’s the point, you shouldn’t pick indexes , just be well diversified across the globe.
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  3.  @SpaceTravel1776  it isn’t equivalent diversification though, that’s my point i guess. Americans companies are subject to American laws , economic shocks to the American economy , the US dollar , to war etc etc etc. Diversification of revenues is only diversification of one variable as well. Returns don’t come from future revenues , they come from what you pay for those revenues and what you pay is influenced by all sorts of factors. Just look at Japanese companies and their returns over the last few decades. They were also exposed to a lot of international revenue.
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  4. VT for the entire world Or a mix of VTI + VXUS . Which gives you a little more holdings at a slightly lower fee. Will increase your trading costs buying two instead of one.
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  5. Lots of reasons really. But an important ones is that individual stock returns are extremely positively skewed , by not investing in approx half the available equities in the world you’re very much under diversified.
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