I'm in agreement with the basics of this view. Many things have both outperformed or underperformed something else for long periods of time and there's no way to know which it will be ahead of time, including the market factor. I've never viewed a US TSM-centric portfolio as anything more than simply another choice among many vs what all investors should start with.But you would have had no way of knowing that ahead of time. Cap-weighted total market or S&P500 isn't "simpler" or more complex, it's just different than something closer to equal-weight. International and fixed income and most other tilts etc. have also underperformed, but again there was no way to know that ahead of time.If one’s goals have been met with underperforming factors for many decades, then one could have exceed those same goals with a lot less volatility, complexity, stress, and hand wringing with a simple total market or s&p 500 fund.
Cheers.
Statistics: Posted by dcabler — Sat Jun 15, 2024 5:25 am — Replies 32 — Views 4403