When following the crowd can lead to greater risk

Speaking to Momentum Media’s nestegg publication recently, our co-CIO Chad Padowitz said that the decades-long growth of stock markets and the rise of influencers had led many Australians to invest in US tech stocks and passive ETFs.

“For years, this has been a winning approach as share prices have soared,” he said.

However Chad warned that many of these hyped assets are arguably overvalued. While uncertainty remains high, he warned that investors who are overexposed to currently popular equities could quickly find themselves in a bind.

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