Is Vanguard S & P 500 index fund still a good long term investment?
Answers
4075 points
EthanR answered 5 months ago …
I believe it is, as most mutual funds do not beat the S&P 500, and the Vanguard 500 fund mirrors the S&P. You can also buy SPY, the exchange traded fund that tracks the S&P 500. However, I would certainly dollar cost average into either fund right now, to minimize the risk of another bear market leg downward.
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102 points
3943 points
MNSL answered 3 months ago …
I think it is better to put money in individual companies (especially in global asset rich hidden gems) than index funds. There are plenty of global under valued companies with good balance sheets and understated fixed assets.
Companies with less debt, market for their products, better cost management plus ability to get raw materials locally will benefit most during next 5 years. They will announce strong results during next 12 months.
Actually if we analyze all subsectors such as banking, cars, airlines, poultry etc, some global companies in each subsector have already benefited from current global crisis. These hidden gems will appreciate continuously and some will have rapid growth during next 5 years.
Companies who escaped from credit crisis and derivative losses will have edge over their competitors now. They will expand their market gradually and they will become leaders of tomorrow.
Finally, it is time to identify sectors, which are going to benefit most due to higher unemployment and credit crisis (specially during next 2 years.)
Pl see following links:
http://article.wn.com/view/2009/07/23/Hyundai_posts_record_profit_in_Q2_ou tlook_strong_8/
http://finance.yahoo.com/news/SP-revises-Ford-outlook-to-apf-365050717.htm l?x=0
Please feel free to contact if you have any query:
msglobalmarket5@gmail.com
