Just because the market (nzx50 or sp500) is overvalued, isn't to say there aren't plenty of stocks that are undervalued.
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Dude, you have got to get with the programme.
Why don't you do some serious analysis instead of looking at headline S&P500 figures.
What is the current valuation of the S&P475? The smallest 475 companies in the SP500? What about the next 1000 under the SP500? What about small cap value? What about international?
Hell, what about individual companies???
This is the most bifurcated market you will ever see.
There are massive swarths of the market trading at well below March 2020 Covid levels and even below GFC, this is a value stock pickers dream, you will get opportunities like this a few times in your life.
Many of the best value fund managers are trading cheaper than any level in 25 years aside from GFC 666 low and Covid bottom. They had the cheapest start to the year in a quarter century.
Look at Bloomstrans whole portfolio, look at Berkshire trading at 12 times earning for christs sake, Look at emerging markets, look at the UK....
There is utter destruction under the hood of the big headline indexes you just need to open your eyes.
Hundreds of companies in the S&P500 have had a decade wiped of their share prices. Let alone under the SP500.
It is pure heaven out there for a value investor. Everything is on sale.
Do some real work instead of posting some crap about the market.
Read 40 to 50 of the Q1 fund letters from people who been doing this for decades and see what they are seeing and saying.
This is when you get rich.
think you have gone off track again. we are talking about being able to do better than kiwisaver fund managers with the new do it your self kiwisaver sharesie might provide.
so could you do better than those kiwisaver returns i posted over the say 10yr period. here they are again if you missed it
10 yrs Cash 2.30% Conservative 3.78% Balanced 6.20% Growth 8.55%
10 yrs Cash 2.30% Conservative 3.78% Balanced 6.20% Growth 8.55%
Question Bull, is growth 100% share allocation.
I always got the impression high growth KS funds was near 100% allocation say around 95%.
Edit: fyi for
NZX50 10 year return 11.23%
https://www.spglobal.com/spdji/en/indices/equity/sp-nzx-50-index/#overview
i wouldnt know on every single one but probably mainly stocks with some cash probably.
I dont know why a benchmark is relevant myself as your comparing if you could do better than the fund managers but if you did use the one you provided obviously they have all mostly under performed
as an example conservative fund ( apparently which most people are in ) i reckon i could make one up of stable nz utility type companies with good reliable dividends and a mix of term deposit stuff ( can you do term deposits thru sharsies ? ) which would easily outperform 4% per yr in income from kiwisaver funds
I guess it'a about comparing apples with apples.
If strictly investing in shares, the index is considered to the benchmark as it is 100% shares. With the different types of funds, you get varying degrees of allocation i.e cash, bonds, shares etc.
For myself I invest strictly in shares so it would be a unfair comparison to compare to the growth fund as I know there is an allocation to bonds.
I don't know what the exact allocation breakdown is for a conservative fund. This also over a 10 year period, interest rates have changed over this period. It would be great to earn in the long run a term deposit rate of 5-6% if the inflation rate was set always at say 2%. Thats why Im perplexed why people put money in term deposit for the long term, when in nature it is below or in line with the inflation figure. The real return is negligible.
We are getting very off topic here, so it might be good to start a new thread, but in the meantime - providers generally provide that info. Here are a couple of screenshots for the Simplicity Growth (first screenshot), and their new High Growth fund. The next two are Conservative and Defensive
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