Bubble in passive investment funds

Ok, in worst case, one needs to work a bit longer. If you’re scared of that possibility, then you should lower your market exposure - but in that case, surprise, surprise, you will also have to work longer due to lower expected returns in case there’s no crisis in the near future. I don’t think there’s a sure way around this - most likely you just need to be flexible and stay invested.

Big ERN has an awesome blog, but as a former FED analyst he’s too focused on economy fundamentals - for example, in 2008 all major economic indicators were positive and most economists, including FED economists, were positive about the state of economy. Crash was unexpected. It usually is unexpected.

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Reweighting (i.e. not following the market-cap distribution) is again a form of trying to beat the market, no?

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Looks like. I remember people were busy with reweighting during the crypto boom in 2017.

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