What Your Advisor Won’t Tell You About Index Funds

I had the most ridiculous conversation with a family friend last week.

We were talking about where she should invest her 401k, and I laid my usual case for conservative investors, including community banks, REITs, and closed-end funds at a discount.

If my friend wanted to really jazz it up, she could add a touch of private equity replication to the portfolio.

But, what about all the discoveries and breakthroughs?

What about the FAANG stocks?

What about all the new technologies, new discoveries, renewable energy, and all the exciting things the future holds?

Don’t get me wrong, I’m just as excited as you are about all of these things.

But by and large, most investors would be better off never expanding beyond the “Big Three” in their search for returns


Your Path to Profit in the Battle Between Banks and Big Tech

At the conference in Phoenix, I often felt like I was at a high-tech conference, more so than a banking conference.

The hallways were full of talk about artificial intelligence, data collection, core processing, real-time payments, and other tech topics.

Most of the vendors in the exhibit halls were tech companies touting products that can help banks be bigger, faster, and better than their competitors.

At the first-night cocktail party, I was at a table and realized that of the dozen or so of us chatting over cocktails there wasn’t a single banker in the group.

With the exception of myself, everyone was from a technology company.

There is another aspect to the technology discussion that I heard going around me.

These folks are afraid of big tech. Companies like Amazon.com Inc. (NasdaqGS:AMZN), Facebook Inc. (NasdaqGS:FB), Alphabet Inc. (NasdaqGS:GOOGL) and Apple Inc. (NasdaqGS:AAPL) already have the customer data on pretty much everyone in the country, and they are eying the trillions of dollars of assets in the banking system much like a hungry puppy would eye a juicy cheeseburger.

The battle between the old guard and the expanding tech juggernauts over where you put your money is just getting started.

That’s great news for the investor looking for an edge in the markets


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