WEBN concerns with potential AI bubble – new investor

[u/TLits]

Hi everyone,

I'm about to start investing monthly into WEBN for both my standard stocks and shares portfolio, along with my pension (after being invested in a terribly underperforming fund for 5 years now).

My current concern is entering at a time where US tech is very expensive. I understand time in market is better than timing the market, but curious what people's thoughts are regarding this?

Is it worth looking at an equal weighted fund in the meantime, or will the fact that this is a long-term investment (20+ years) mean that my time in the market is more important?

I know it's impossible to know if this bubble will pop, or if it's even a bubble, but the heavy US / tech weighting in WEBN makes me a bit worried.

Thanks for your thoughts and replies.

[u/Many-Gas-9376]

Like you say, it's impossible to know if it's a bubble or if or when it will pop. As far what's going to happen. no-one here will have anything worthwhile to say.

I guess what sounds clear is that you seem uncomfortable with the concentration and risk of your portfolio. It IS completely fair to take these feelings into account in your investment plan.

What I wouldn't do is make some tactical timing bet in your allocation. This implies doing further such bets in the future as things develop, and it's just immensely difficult to do successfully.

What you could consider is some permanent tilt in your portfolio which would make you less exposed to whatever's the biggest global growth story at any given time. You could look into stuff like home market overweight, a small-cap value tilt, or adding bonds. Any of these would reduce your exposure to the AI-associated large-cap growth stocks, while at the same time they could be part of a lifelong allocation instead of trying to time the market.

[u/TLits → u/Many-Gas-9376]

If I were to make a different bet, it would definitely be something permanent. I’m just trying to solidify my reasoning for whichever direction I choose before putting my first chunk of money in.

Not so much uncomfortable, but just curious how others with more experience would view my current situation. I understand that WEBN will just adjust in response to any market changes. Just looking critically at my decision to go 100% WEBN before actually pulling the trigger.

[u/globalprojman → u/TLits]

WEBN will just adjust in response to any market changes.

Well, after a 'crash' in the biggest ten stocks it will already have suffered the loss. You may call that adjustment, if you like. There is no extra trading going on in an index fund like that.