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0 pointsSpooky231mo ago0 comments

You're thinking backwards. The money is parked in these companies. They basically figured out a strategy to maximize return in an environment where the public market is dominated by passive capital.

It's time for Google/Elon/Softbank/sovereign wealth funds, etc to cash out.

For you, it's time to tilt to bond and value.

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4 comments · 3 top-level

JumpCrisscross1mo ago· 1 in thread

> an environment where the public market is dominated by passive capital

While by "the end of May 2024, passive mutual funds and ETF assets" had "grown to nearly 60% of the equity fund market" (emphasis mine) [1], only about a third of American stocks are held by passive capital [2]. (Index funds are about 16%.)

> For you, it's time to tilt to bond and value

Or just buy the market and watch the show.

[1] https://www.americancentury.com/institutional-investors/insi...

[2] https://alexchinco.com/double-what-you-think-it-is.pdf

Spooky23OP1mo ago

Fair, that was a flippant response on my part. I'm of the age where sequence of returns is a impactful risk.

KetoManx641mo ago

Buying bonds in this day and age is asinine when Bitcoin has outperformed stocks and bonds by magnitudes and will continue to do so as more countries seek to distance themselves from the dollar and the federal reserve gets more desperate with its printing.

alecco1mo ago

> For you, it's time to tilt to bond

Do you know anything about the state of bond markets?

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