Every investment company out there knew this from day one. They were riding the hype and gains. Now the late and individual investors will pay for the losses while the big investors start moving cash to the next hype.
I think you are crazy putting money into passive index funds.
As for the investors, knowing when to pull out is when they start pushing articles like this. They’re already out and want your capital to go where they are going next.
Well I’ve pretty much pulled it out of everything and bought a house (no mortgage yay) but I rode NVidia, BAE Systems with a safe position held on an actively managed ETF.
I’ve got a huge pension lined up so I’m going to go on holiday a lot basically. I get a lump sum early payment of that soon so I can invest that somewhere more productive.
What if, and this might be just a guess, the hundreds of thousands of people at major investment corporations have thought of this as well and driven the price up so that they are now adequately valued?
Do you know more about the future of these tech companies then the legions of math/physics/economics/CS PhDs paid to investigate the potential of these companies?
If the sales and earnings go up in the long run, and the stocks aren’t super overvalued, then the stocks go up. It doesn’t matter what other people think. All that matters is the performance and valuation.
When you're doing long-term investments, it's not a zero-sum game. It is possible - likely even - that you and those hordes of PhDs all come out ahead.
How will the big investors know when to start moving money to the “next hype”?