Quote:
Originally Posted by Pride of Cucamonga
I'm very familiar with the Boglehead approach to investing & the importance of diversifying. That said, for a 30 yrs old with a 6 months emergency fund & a safe, steady and reliable income stream that pays 100%++ of their annual expenses, why would investing a VERY LARGE portion of their investment in a 100% tech EFT or mutual fund be a bad idea?
I'm aware that the S&P 500 is already tech-heavy, and investing in it might be adequate. But presumably no one thinks the internet/computers/cell phones/AI is going to do anything other than continue to grow & become even more entrenched in our lives over the next 20+ years, so why would investing in a diversified tech fund for someone with a 20+ year investing outlook be overly risky?
The only risk this noob sees is, if when they are older and need to diversify into less volatile investments, tech happened to be super down that year & for whatever reason(s) they were unable to put off selling / transferring their tech etf/mutual fund investments.
Thanks in advance for any replies.
Because tech isn't guaranteed to return as much as something like VOO or a periodically rebalanced portfolio of VTI and VXUS over the next 20 years, and certainly not without added risk...I present you exhibit A:
In other words, you and everyone else, in reality, has no idea how tech will perform in the next 20 years. Today is just a speed bump, and for all we know, we're just in an AI bubble. And have you seen AI lately? Dude is massive now. Ready to pop!