Bob McA…. asked this question.
I understand how the S&P 500 index ETF represents well the overall economic well-being of the US but most economists/financial gurus have always seemed to suggest that having a broad asset diversification is prudent with portfolio DIY management–yes, including ETF for lower expenses but also understanding that different sectors will have ups and downs. Why have you eliminated asset diversification allocation (although the S&P is broadly diversified with large capitalized companies)?
Monday Morning Millionaire Program Answer:
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Many of the gurus that you mention have a vested interest in getting investors to trade. Trading is dangerous to investors’ wealth; it allows someone like Lloyd Blankfein to retire a billionaire.
Most of the S&P 500 companies get much of their profits in foreign markets including India and China. The global village which Marshall McLuhan first spoke about 60 years ago well-established now. Investing in the American economy involves investing globally to a significant extent.