U.S. markets closed
  • S&P Futures

    4,199.00
    -24.00 (-0.57%)
     
  • Dow Futures

    33,841.00
    -176.00 (-0.52%)
     
  • Nasdaq Futures

    13,876.75
    -104.50 (-0.75%)
     
  • Russell 2000 Futures

    2,290.80
    -19.30 (-0.84%)
     
  • Crude Oil

    71.54
    -0.61 (-0.85%)
     
  • Gold

    1,818.20
    -43.20 (-2.32%)
     
  • Silver

    27.26
    -0.55 (-1.97%)
     
  • EUR/USD

    1.1995
    -0.0006 (-0.05%)
     
  • 10-Yr Bond

    1.5690
    +0.0700 (+4.67%)
     
  • Vix

    18.15
    +1.13 (+6.64%)
     
  • GBP/USD

    1.3981
    -0.0006 (-0.04%)
     
  • USD/JPY

    110.7670
    +0.1540 (+0.14%)
     
  • BTC-USD

    38,574.24
    -1,353.54 (-3.39%)
     
  • CMC Crypto 200

    956.83
    -35.64 (-3.59%)
     
  • FTSE 100

    7,184.95
    +12.47 (+0.17%)
     
  • Nikkei 225

    29,020.16
    -270.85 (-0.92%)
     

Why index funds are nuts

·5 min read
Why index funds are nuts
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

How much of my retirement portfolio do I really want to gamble on a high-risk, low-profit company that is already valued at over 1,000 times its most recent earnings, plus seven times the peak earnings of its entire industry, and which is controlled and run by a volatile, drug-taking eccentric? Right now if you hold an S&P 500 or similar stock market index fund you’ve got more money invested in Tesla than you do in, say, Ralph Lauren (RL) Molson Coors (TAP) Gap (GPS) Hasbro (HAS) American Airlines (AAL) United Airlines (UAL) Delta Air Lines (DAL) Campbell Soup (CPB) Domino’s Pizza (DPZ) Hershey (HSY) Wynn Resorts (WYNN) Kellogg (K) General Mills (GIS) Darden Restaurants (DRI) Clorox (CLX)… and many others. You’ve got nearly five times as much of your retirement portfolio invested in Tesla than you do in the entire U.S. home-building industry.