My RRSP was 100% in the S&P500 as of about a week ago. Now it is 100% in an Equity Asset Allocation ETF that is globally diversified and holds about 40% S&P500 Exposure. I reduced my exposure to the US and Gained global diversification in a single trade. We had a pretty amazing run the past few years but what I am seeing in the market today gives me caution and concern that the historic run of the past 3 years MAY not continue. Here are the main reasons: 1. Global tensions and war 2. Changing world order 3. Extremely high valuations (PLTR, NVDA, etc...) 4. Economic concerns about rising cost of living 5. Tariff and Trade uncertainty building up Not trying to say we have peaked but I am definitely in a position where I have taken some risk off the table while still trying to stay fully invested and diversified. What do you think? Is this run 3 year run of higher than average returns going to continue?
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14 Comments
Clantosa @clantosa · 6mo
You'll be better off this way anyway. Good work choosing something solid and keep on trucking
Ricky @ricky123231 · 6mo
I’m no expert, I’ve being investing for about a year and a half, but look at the valuations of the dot com bubble. They were roughly 80 P/E at peak for the Nasdaq, I’m not saying that it would be bad to diversify right now. I would say a market crash is very possible in the next couple years, but not for the reasons you mentioned. This is all in my opinion though so take that as you will.
Cam @camm81 · 6mo
I just did the exact same thing with my RRSP's aswell. I think its a great choice!
mike @newbiemike · 6mo
yes!
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