10-Minute Contrarian Ep234: Index Funds? Really??
Dec 13, 2025
Discover why only 1% of money managers can consistently outperform the S&P 500 and how index funds offer strong returns for average investors. Learn about contrarian opportunities in metals, crypto, and energy during market cycles. Explore the benefits of transitioning to safer income investments and backtesting your ETF strategy. VP highlights key ETFs and the significance of maintaining a strong anchor in your portfolio. Plus, tips on tax optimization and residency strategies to enhance your investment journey!
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Why Index Funds Work So Well
- Index funds are valuable because they capture the rare few winners that drive most market gains.
- Buying broad ETFs gives you exposure to whatever companies become the next big winners without picking them yourself.
Be Active During Contrarian Cycles
- Participate actively during cycles and allow enough time for contrarian trades to play out; don't sit on your hands.
- Use the window when assets are rising to capture gains in metals, crypto, and energy where contrarian upside exists.
Transition To Income As You Cash Out
- When you reach a 'forever portfolio' stage you can shift into lower-volatility income vehicles like dividend stocks, bond funds, and CEFs.
- Even 5–20% returns feel small compared to earlier speculative gains but become core for long-term stability.
