OPINION: 'If you’d invested equally in the seven most hated assets at the start of the year, including cash and bonds, you’d have made just under 10% so far in 2021.'
Well, it looks like my dream of retiring early and rich on the backs of the crypto mania is going up in virtual smoke.
I’m just going to bet my 401 and IRA every year against the thundering herd that manages the world’s big pension funds. I’m going to invest in what they hate and avoid what they love. Among their most hated assets at the start of this year? Er…the London stock market, global energy stocks, and—anyone? Anyone? Yep! — global consumer staples stocks.Every month, the survey tracks fund manager opinion on what it considers the “big five” global equity markets: The U.S. , Japan, Continental Europe, Emerging Markets, and the United Kingdom—which is a much bigger financial market than its purely domestic economy would merit, and is home to a large number of gigantic multinationals.
Then there are the energy stocks, which big money managers wouldn’t touch in January with a 10-foot pole.Actually, if you’d invested equally in the seven most hated assets at the start of the year, including cash and bonds, you’d have made just under 10% so far in 2021. That’s nearly twice the return on the Vanguard Balanced Index Fund VBINX, +0.66% or on what may be the ultimate benchmark balanced portfolio, 60% Vanguard Total World Stock and 40% Vanguard Total World Bond BNDW, +0.26%.
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