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Re: High level investment strategy - thoughts

Posted: June 8th, 2024, 12:53 pm
by EthicsGradient
jaizan wrote:
scrumpyjack wrote:I'm certainly not a religious zealot but it is unarguable that active managers are higher risk than a global ETF.


I disagree. Some "global" etfs have about 50~60% of the investments allocated to the US. Which is near to a historically high PE multiple. One way of increasing risk is to buy expensive assets.

I don't think that's an appropriate diversification for UK investors.

On the other hand, once you start looking at relative current PEs of different markets, you're not thinking about a long term strategy, but short-term tactics - timing the market.

Re: High level investment strategy - thoughts

Posted: June 8th, 2024, 3:19 pm
by jaizan
EthicsGradient wrote:
jaizan wrote:On the other hand, once you start looking at relative current PEs of different markets, you're not thinking about a long term strategy, but short-term tactics - timing the market.


That's not how I'm thinking.
A market on a really high PE multiple might stay there for a few months or even a few years. It's most unlikely to remain on an abnormally high PE for the next 20~30 years.