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{"i18n":{"language":"zh_CN"},"detailType":1,"isChannel":false,"data":{"magic":2,"id":819694463,"tweetId":"819694463","gmtCreate":1630062212252,"gmtModify":1704955360227,"author":{"id":3582010686766598,"idStr":"3582010686766598","authorId":3582010686766598,"authorIdStr":"3582010686766598","name":"Lululimmok","avatar":"https://static.tigerbbs.com/fcb4102cffc589f4ab17c35dd6217cf0","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":12,"crmLevelSwitch":0,"individualDisplayBadges":[],"wearingBadges":[],"fanSize":4,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"title":"","extraTitle":"","html":"<html><head></head><body>Ok</body></html>","htmlText":"<html><head></head><body>Ok</body></html>","text":"Ok","highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://laohu8.com/post/819694463","repostId":1161784228,"repostType":4,"repost":{"id":"1161784228","kind":"news","pubTimestamp":1630047842,"share":"https://www.laohunote.com/m/news/1161784228?lang=zh_CN&edition=full","pubTime":"2021-08-27 15:04","market":"us","language":"en","title":"Why stock market bulls may be right to push valuations so high<blockquote>为什么股市多头将估值推得如此之高可能是正确的</blockquote>","url":"https://stock-news.laohu8.com/highlight/detail?id=1161784228","media":"MarketWatch","summary":"Investor sentiment right now doesn’t indicate a frothy market\nAGENCE FRANCE-PRESSE/GETTY IMAGES\nWith","content":"Investor sentiment right now doesn’t indicate a frothy market<blockquote>目前的投资者情绪并不表明市场存在泡沫</blockquote> <img src=\"https://static.tigerbbs.com/97be72b5bb9e18d0dd71a2ffdb82aa83\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\">AGENCE FRANCE-PRESSE/GETTY IMAGES<blockquote>法新社/盖蒂图片社</blockquote> With U.S. stocks reaching new highs, investors and experts alike are starting to wonder if market conditions are getting frothy.<blockquote>随着美国股市创下新高，投资者和专家都开始怀疑市场状况是否变得泡沫化。</blockquote> In a frothy market, investor enthusiasm begins to outpace any consideration of risk.&nbsp; Investors feel confident in the economy and corporate earnings and begin to project that confidence further into the future.&nbsp; They increasingly listen to their greed impulse and tune out fear, leading them to bid up stock prices to levels that look historically high and difficult to justify based on the near-term outlook.<blockquote>在泡沫市场中，投资者的热情开始超过对风险的任何考虑。投资者对经济和企业盈利充满信心，并开始将这种信心进一步投射到未来。他们越来越倾听自己的贪婪冲动，忽略恐惧，导致他们将股价抬高到看起来处于历史高位的水平，根据近期前景很难证明这一点。</blockquote> Taken to its extreme, this eventually lays the groundwork for a bubble, when investor emotion causes prices to detach completely from valuation.&nbsp; We certainly are not there at this point, so we’ll leave that for another time.<blockquote>极端情况下，这最终会为泡沫埋下伏笔，即投资者的情绪导致价格完全脱离估值。我们现在肯定还没有到那一步，所以我们将把这个问题留到下次再说。</blockquote> A clear example of frothiness played out in late 2017, when many investors were fully invested in stocks and behaving as though volatility was only going lower.&nbsp; Fear of missing out overtook the fear of losing money and many took on more risk than they probably would have wanted (or perhaps even realized they had) in a more normal environment.&nbsp; Those are classic symptoms of a frothy market.<blockquote>泡沫的一个明显例子发生在2017年底，当时许多投资者完全投资于股票，表现得好像波动性只会下降。对错过的恐惧超过了对赔钱的恐惧，许多人承担了比他们在更正常的环境下可能想要（甚至可能意识到他们已经意识到）更多的风险。这些是泡沫市场的典型症状。</blockquote> While there have been pockets of speculation of late — cryptocurrencies, SPACs, meme stocks — we are not seeing the sort of widespread excess in investor enthusiasm that would lead us to characterize the broader market as frothy.&nbsp; Yes, returns have been robust and stocks have risen steadily.&nbsp; One could easily assume that investors have anchored on recent good news and moved into the “greed” phase.<blockquote>虽然最近出现了一些投机热潮--加密货币、SPAC、备忘录股票--但我们并没有看到投资者的热情普遍过高，以至于我们将大盘定性为泡沫。是的，回报率一直很强劲，股市也在稳步上涨。人们很容易认为，投资者已经抓住了最近的利好消息，进入了 “贪婪 ”阶段。</blockquote> But what if this optimism is justified?&nbsp; Economic growth has been exceptionally strong, driven by pent-up demand and massively accommodative policy, while earnings have rebounded dramatically.&nbsp; Continued growth should bring valuations to a point where they begin to look more reasonable.<blockquote>但如果这种乐观是合理的呢？在被压抑的需求和大规模宽松政策的推动下，经济增长异常强劲，而盈利也大幅反弹。持续增长应该会使估值开始变得更加合理。</blockquote> Measures of risk appetite, meanwhile, are not extreme; the various risk barometers periodically make a run at exuberance, but there’s still enough to worry about — from a possible Fed policy change to the growing spread of the Delta variant — to put investor emotion back in check before things get out of hand.<blockquote>与此同时，风险偏好的衡量标准并不极端；各种风险晴雨表会周期性地出现繁荣，但仍有足够多的担忧--从美联储可能的政策变化到德尔塔变异毒株利差的扩大--在事情失控之前让投资者的情绪重新得到控制。</blockquote> In fact, investors’ inability to shake these worries produces an interesting paradox, whereby the largest and most-stable stocks are one of the few areas that might actually be starting to warrant the “frothy” label.&nbsp; Investors feel they have no choice but to own stocks, yet are reluctant to take on risk.<blockquote>事实上，投资者无法摆脱这些担忧，这就产生了一个有趣的悖论，即规模最大、最稳定的股票是少数几个可能真正开始被贴上 “泡沫 ”标签的领域之一。投资者觉得他们别无选择，只能持有股票，但又不愿承担风险。</blockquote> As a result, traditional “risk-on” sectors — small-caps, high-beta stocks, IPOs, for example — have lost steam as investors pivot to their favorite large-cap, U.S. growth companies, which have seen their price multiples and representation in the indexes rise to lofty levels.<blockquote>因此，传统的 “高风险 ”板块--如小盘股、高贝塔系数股票、首次公开募股--已经失去了动力，因为投资者转向了他们最喜欢的大盘股、美国成长型公司，这些公司的市盈率和在指数中的代表性都上升到了很高的水平。</blockquote> At times like this, it can be tempting to chase performance and buy even more of what’s working because “it’s going up.”&nbsp; But like the Hotel California, getting in is not a problem, but getting out may prove difficult as everyone heads for the exit at once.<blockquote>在这种时候，人们可能会忍不住追逐性能，购买更多有效的产品，因为 “它在上涨”。但就像加州酒店一样，进去不是问题，但出去可能会很困难，因为每个人都同时走向出口。</blockquote> Risk control<blockquote>风险控制</blockquote> Investors do have options to mitigate the risks that may be developing within this part of the market.&nbsp; While some are turning to “smart beta,” which uses a different index-weighting methodology — such as dividends or volatility (versus the market capitalization-weighted approach used by many indexes) — there is a clear element of market timing in such moves that can materially impact performance.<blockquote>投资者确实可以选择减轻这部分市场可能出现的风险。虽然有些人转向 “智能贝塔”，它使用了不同的指数加权方法--如股息或波动率（与许多指数使用的市值加权方法相比）--但在这种走势中，有一个明显的市场时机因素，会对业绩产生重大影响。</blockquote> Better to choose a balanced approach — for example, an equal-weighted exchange-traded fund, such as Invesco S&amp;P500 Equal Weight ETF&nbsp;or the more reasonably priced iShares MSCI USA Equal Weighted ETF&nbsp;— may reduce concentration and manage risk better than a more extreme move into, say, a value-skewed, dividend-weighted fund.<blockquote>最好选择平衡的方法——例如，等权重交易所交易基金，例如 Invesco S&amp;P500 等权重 ETF 或定价更合理的 iShares MSCI USA 等权重 ETF——可能会降低集中度并更好地管理风险。比更极端的举措，例如，转向价值偏斜、股息加权基金。</blockquote> For those who manage to maintain a reasonable time horizon, start looking for opportunities; remember they’re unlikely to reside within the market’s current darlings, so you’ll want to cast a broad net.<blockquote>对于那些设法保持合理时间范围的人来说，开始寻找机会；请记住，它们不太可能出现在市场上目前的宠儿之中，因此您需要撒下一张大网。</blockquote> If you’re patient, developed markets outside of the U.S. are shaping up to offer more fertile ground. The iShares Core MSCI EAFE ETF&nbsp;offers a cost-effective way to get exposure to developed markets, while Vanguard FTSE Emerging Markets ETF&nbsp;does the same for emerging regions; meanwhile, consider Vanguard’s FTSE All-World ex-US ETF&nbsp;for an all-in-one solution.<blockquote>如果你有耐心，美国以外的发达市场正在形成，提供更肥沃的土壤。iShares Core MSCI EAFE ETF 提供了一种经济高效的方式来投资发达市场，而 Vanguard FTSE Emerging Markets ETF 则为新兴地区提供同样的投资；同时，可以考虑 Vanguard 的 FTSE All-World ex-US ETF，这是一个一体化的解决方案。</blockquote> Meanwhile, keep in mind that emotion is not your friend, so stay disciplined. When things look frothy, investors often try to time the market by moving to cash, a notoriously tricky and strongly discouraged maneuver.&nbsp; Even those lucky enough to avoid a pullback rarely get the re-entry right, leaving them sitting on the sidelines watching a major market advance pass them by.&nbsp; Remember, you and your financial adviser worked hard to find the right long-term strategy for you — stick with it for the long-term.<blockquote>同时，请记住，情绪不是你的朋友，所以要保持自律。当事情看起来泡沫化时，投资者经常试图通过转向现金来把握市场时机，这是一个众所周知的棘手和强烈不鼓励的策略。即使是那些幸运地避免了回调的人，也很少能正确地重新进入，让他们坐在一旁，看着市场的重大上涨从他们身边溜走。请记住，你和你的财务顾问努力为你找到正确的长期策略——长期坚持下去。</blockquote>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why stock market bulls may be right to push valuations so high<blockquote>为什么股市多头将估值推得如此之高可能是正确的</blockquote></title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 12.5px; color: #7E829C; margin: 0;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy stock market bulls may be right to push valuations so high<blockquote>为什么股市多头将估值推得如此之高可能是正确的</blockquote>\n</h2>\n<h4 class=\"meta\">\n\nMarketWatch2021-08-27 15:04\n\n</h4>\n</header>\n<article>\nInvestor sentiment right now doesn’t indicate a frothy market<blockquote>目前的投资者情绪并不表明市场存在泡沫</blockquote> <img src=\"https://static.tigerbbs.com/97be72b5bb9e18d0dd71a2ffdb82aa83\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\">AGENCE FRANCE-PRESSE/GETTY IMAGES<blockquote>法新社/盖蒂图片社</blockquote> With U.S. stocks reaching new highs, investors and experts alike are starting to wonder if market conditions are getting frothy.<blockquote>随着美国股市创下新高，投资者和专家都开始怀疑市场状况是否变得泡沫化。</blockquote> In a frothy market, investor enthusiasm begins to outpace any consideration of risk.&nbsp; Investors feel confident in the economy and corporate earnings and begin to project that confidence further into the future.&nbsp; They increasingly listen to their greed impulse and tune out fear, leading them to bid up stock prices to levels that look historically high and difficult to justify based on the near-term outlook.<blockquote>在泡沫市场中，投资者的热情开始超过对风险的任何考虑。投资者对经济和企业盈利充满信心，并开始将这种信心进一步投射到未来。他们越来越倾听自己的贪婪冲动，忽略恐惧，导致他们将股价抬高到看起来处于历史高位的水平，根据近期前景很难证明这一点。</blockquote> Taken to its extreme, this eventually lays the groundwork for a bubble, when investor emotion causes prices to detach completely from valuation.&nbsp; We certainly are not there at this point, so we’ll leave that for another time.<blockquote>极端情况下，这最终会为泡沫埋下伏笔，即投资者的情绪导致价格完全脱离估值。我们现在肯定还没有到那一步，所以我们将把这个问题留到下次再说。</blockquote> A clear example of frothiness played out in late 2017, when many investors were fully invested in stocks and behaving as though volatility was only going lower.&nbsp; Fear of missing out overtook the fear of losing money and many took on more risk than they probably would have wanted (or perhaps even realized they had) in a more normal environment.&nbsp; Those are classic symptoms of a frothy market.<blockquote>泡沫的一个明显例子发生在2017年底，当时许多投资者完全投资于股票，表现得好像波动性只会下降。对错过的恐惧超过了对赔钱的恐惧，许多人承担了比他们在更正常的环境下可能想要（甚至可能意识到他们已经意识到）更多的风险。这些是泡沫市场的典型症状。</blockquote> While there have been pockets of speculation of late — cryptocurrencies, SPACs, meme stocks — we are not seeing the sort of widespread excess in investor enthusiasm that would lead us to characterize the broader market as frothy.&nbsp; Yes, returns have been robust and stocks have risen steadily.&nbsp; One could easily assume that investors have anchored on recent good news and moved into the “greed” phase.<blockquote>虽然最近出现了一些投机热潮--加密货币、SPAC、备忘录股票--但我们并没有看到投资者的热情普遍过高，以至于我们将大盘定性为泡沫。是的，回报率一直很强劲，股市也在稳步上涨。人们很容易认为，投资者已经抓住了最近的利好消息，进入了 “贪婪 ”阶段。</blockquote> But what if this optimism is justified?&nbsp; Economic growth has been exceptionally strong, driven by pent-up demand and massively accommodative policy, while earnings have rebounded dramatically.&nbsp; Continued growth should bring valuations to a point where they begin to look more reasonable.<blockquote>但如果这种乐观是合理的呢？在被压抑的需求和大规模宽松政策的推动下，经济增长异常强劲，而盈利也大幅反弹。持续增长应该会使估值开始变得更加合理。</blockquote> Measures of risk appetite, meanwhile, are not extreme; the various risk barometers periodically make a run at exuberance, but there’s still enough to worry about — from a possible Fed policy change to the growing spread of the Delta variant — to put investor emotion back in check before things get out of hand.<blockquote>与此同时，风险偏好的衡量标准并不极端；各种风险晴雨表会周期性地出现繁荣，但仍有足够多的担忧--从美联储可能的政策变化到德尔塔变异毒株利差的扩大--在事情失控之前让投资者的情绪重新得到控制。</blockquote> In fact, investors’ inability to shake these worries produces an interesting paradox, whereby the largest and most-stable stocks are one of the few areas that might actually be starting to warrant the “frothy” label.&nbsp; Investors feel they have no choice but to own stocks, yet are reluctant to take on risk.<blockquote>事实上，投资者无法摆脱这些担忧，这就产生了一个有趣的悖论，即规模最大、最稳定的股票是少数几个可能真正开始被贴上 “泡沫 ”标签的领域之一。投资者觉得他们别无选择，只能持有股票，但又不愿承担风险。</blockquote> As a result, traditional “risk-on” sectors — small-caps, high-beta stocks, IPOs, for example — have lost steam as investors pivot to their favorite large-cap, U.S. growth companies, which have seen their price multiples and representation in the indexes rise to lofty levels.<blockquote>因此，传统的 “高风险 ”板块--如小盘股、高贝塔系数股票、首次公开募股--已经失去了动力，因为投资者转向了他们最喜欢的大盘股、美国成长型公司，这些公司的市盈率和在指数中的代表性都上升到了很高的水平。</blockquote> At times like this, it can be tempting to chase performance and buy even more of what’s working because “it’s going up.”&nbsp; But like the Hotel California, getting in is not a problem, but getting out may prove difficult as everyone heads for the exit at once.<blockquote>在这种时候，人们可能会忍不住追逐性能，购买更多有效的产品，因为 “它在上涨”。但就像加州酒店一样，进去不是问题，但出去可能会很困难，因为每个人都同时走向出口。</blockquote> Risk control<blockquote>风险控制</blockquote> Investors do have options to mitigate the risks that may be developing within this part of the market.&nbsp; While some are turning to “smart beta,” which uses a different index-weighting methodology — such as dividends or volatility (versus the market capitalization-weighted approach used by many indexes) — there is a clear element of market timing in such moves that can materially impact performance.<blockquote>投资者确实可以选择减轻这部分市场可能出现的风险。虽然有些人转向 “智能贝塔”，它使用了不同的指数加权方法--如股息或波动率（与许多指数使用的市值加权方法相比）--但在这种走势中，有一个明显的市场时机因素，会对业绩产生重大影响。</blockquote> Better to choose a balanced approach — for example, an equal-weighted exchange-traded fund, such as Invesco S&amp;P500 Equal Weight ETF&nbsp;or the more reasonably priced iShares MSCI USA Equal Weighted ETF&nbsp;— may reduce concentration and manage risk better than a more extreme move into, say, a value-skewed, dividend-weighted fund.<blockquote>最好选择平衡的方法——例如，等权重交易所交易基金，例如 Invesco S&amp;P500 等权重 ETF 或定价更合理的 iShares MSCI USA 等权重 ETF——可能会降低集中度并更好地管理风险。比更极端的举措，例如，转向价值偏斜、股息加权基金。</blockquote> For those who manage to maintain a reasonable time horizon, start looking for opportunities; remember they’re unlikely to reside within the market’s current darlings, so you’ll want to cast a broad net.<blockquote>对于那些设法保持合理时间范围的人来说，开始寻找机会；请记住，它们不太可能出现在市场上目前的宠儿之中，因此您需要撒下一张大网。</blockquote> If you’re patient, developed markets outside of the U.S. are shaping up to offer more fertile ground. The iShares Core MSCI EAFE ETF&nbsp;offers a cost-effective way to get exposure to developed markets, while Vanguard FTSE Emerging Markets ETF&nbsp;does the same for emerging regions; meanwhile, consider Vanguard’s FTSE All-World ex-US ETF&nbsp;for an all-in-one solution.<blockquote>如果你有耐心，美国以外的发达市场正在形成，提供更肥沃的土壤。iShares Core MSCI EAFE ETF 提供了一种经济高效的方式来投资发达市场，而 Vanguard FTSE Emerging Markets ETF 则为新兴地区提供同样的投资；同时，可以考虑 Vanguard 的 FTSE All-World ex-US ETF，这是一个一体化的解决方案。</blockquote> Meanwhile, keep in mind that emotion is not your friend, so stay disciplined. When things look frothy, investors often try to time the market by moving to cash, a notoriously tricky and strongly discouraged maneuver.&nbsp; Even those lucky enough to avoid a pullback rarely get the re-entry right, leaving them sitting on the sidelines watching a major market advance pass them by.&nbsp; Remember, you and your financial adviser worked hard to find the right long-term strategy for you — stick with it for the long-term.<blockquote>同时，请记住，情绪不是你的朋友，所以要保持自律。当事情看起来泡沫化时，投资者经常试图通过转向现金来把握市场时机，这是一个众所周知的棘手和强烈不鼓励的策略。即使是那些幸运地避免了回调的人，也很少能正确地重新进入，让他们坐在一旁，看着市场的重大上涨从他们身边溜走。请记住，你和你的财务顾问努力为你找到正确的长期策略——长期坚持下去。</blockquote>\n<div class=\"bt-text\">\n\n\n 来源：<a href=\"https://www.marketwatch.com/story/why-stock-market-bulls-may-be-right-to-push-valuations-so-high-11630010176?mod=home-page\">MarketWatch</a>\n为提升您的阅读体验，我们对本页面进行了排版优化\n\n\n</div>\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index"},"source_url":"https://www.marketwatch.com/story/why-stock-market-bulls-may-be-right-to-push-valuations-so-high-11630010176?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1161784228","content_text":"Investor sentiment right now doesn’t indicate a frothy market\nAGENCE FRANCE-PRESSE/GETTY IMAGES\nWith U.S. stocks reaching new highs, investors and experts alike are starting to wonder if market conditions are getting frothy.\nIn a frothy market, investor enthusiasm begins to outpace any consideration of risk.  Investors feel confident in the economy and corporate earnings and begin to project that confidence further into the future.  They increasingly listen to their greed impulse and tune out fear, leading them to bid up stock prices to levels that look historically high and difficult to justify based on the near-term outlook.\nTaken to its extreme, this eventually lays the groundwork for a bubble, when investor emotion causes prices to detach completely from valuation.  We certainly are not there at this point, so we’ll leave that for another time.\nA clear example of frothiness played out in late 2017, when many investors were fully invested in stocks and behaving as though volatility was only going lower.  Fear of missing out overtook the fear of losing money and many took on more risk than they probably would have wanted (or perhaps even realized they had) in a more normal environment.  Those are classic symptoms of a frothy market.\nWhile there have been pockets of speculation of late — cryptocurrencies, SPACs, meme stocks — we are not seeing the sort of widespread excess in investor enthusiasm that would lead us to characterize the broader market as frothy.  Yes, returns have been robust and stocks have risen steadily.  One could easily assume that investors have anchored on recent good news and moved into the “greed” phase.\nBut what if this optimism is justified?  Economic growth has been exceptionally strong, driven by pent-up demand and massively accommodative policy, while earnings have rebounded dramatically.  Continued growth should bring valuations to a point where they begin to look more reasonable.\nMeasures of risk appetite, meanwhile, are not extreme; the various risk barometers periodically make a run at exuberance, but there’s still enough to worry about — from a possible Fed policy change to the growing spread of the Delta variant — to put investor emotion back in check before things get out of hand.\nIn fact, investors’ inability to shake these worries produces an interesting paradox, whereby the largest and most-stable stocks are one of the few areas that might actually be starting to warrant the “frothy” label.  Investors feel they have no choice but to own stocks, yet are reluctant to take on risk.\nAs a result, traditional “risk-on” sectors — small-caps, high-beta stocks, IPOs, for example — have lost steam as investors pivot to their favorite large-cap, U.S. growth companies, which have seen their price multiples and representation in the indexes rise to lofty levels.\nAt times like this, it can be tempting to chase performance and buy even more of what’s working because “it’s going up.”  But like the Hotel California, getting in is not a problem, but getting out may prove difficult as everyone heads for the exit at once.\nRisk control\nInvestors do have options to mitigate the risks that may be developing within this part of the market.  While some are turning to “smart beta,” which uses a different index-weighting methodology — such as dividends or volatility (versus the market capitalization-weighted approach used by many indexes) — there is a clear element of market timing in such moves that can materially impact performance.\nBetter to choose a balanced approach — for example, an equal-weighted exchange-traded fund, such as Invesco S&P500 Equal Weight ETF or the more reasonably priced iShares MSCI USA Equal Weighted ETF — may reduce concentration and manage risk better than a more extreme move into, say, a value-skewed, dividend-weighted fund.\nFor those who manage to maintain a reasonable time horizon, start looking for opportunities; remember they’re unlikely to reside within the market’s current darlings, so you’ll want to cast a broad net.\nIf you’re patient, developed markets outside of the U.S. are shaping up to offer more fertile ground. The iShares Core MSCI EAFE ETF offers a cost-effective way to get exposure to developed markets, while Vanguard FTSE Emerging Markets ETF does the same for emerging regions; meanwhile, consider Vanguard’s FTSE All-World ex-US ETF for an all-in-one solution.\nMeanwhile, keep in mind that emotion is not your friend, so stay disciplined. When things look frothy, investors often try to time the market by moving to cash, a notoriously tricky and strongly discouraged maneuver.  Even those lucky enough to avoid a pullback rarely get the re-entry right, leaving them sitting on the sidelines watching a major market advance pass them by.  Remember, you and your financial adviser worked hard to find the right long-term strategy for you — stick with it for the long-term.","news_type":1,"symbols_score_info":{".SPX":0.9,".IXIC":0.9,".DJI":0.9}},"isVote":1,"tweetType":1,"viewCount":848,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":2,"subscribersOnly":false,"subscribersOnlyAccessible":false,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/819694463"}