I was talking investments with a friend over the weekend and we got into the current trend with index funds.
People are funneling money into VTI and VOO:
One problem people are seeing with this is the failing companies are being propped up by the generic index funds it's a part of. The massive amount of money those funds are receiving are exposing investors to bad companies (albeit small percentages of those companies).
The issue I see is the overvaluation of ALL stocks in those indices and, if there ever were a strong correction, the loss in market cap for those companies.
I'm not preaching doom here. And I'm still keeping my holdings in my index funds. But it got me thinking about investing in a Micro Cap Index as a Hedge for corrections.
Thoughts?
Submitted June 19, 2017 at 09:17AM by SweetPotatoStew http://ift.tt/2sidhcC
