The chart nearby illustrates how someone who invested $100,000 at the start of 2000 and, following my advice, used index funds, stayed the course and rebalanced once a year, would have seen that investment grow to $191,859 by the end of 2009. At the same time, someone buying only U.S. stocks would have seen that same investment decline to $93,717.
You mean S&P index fund? Jacky
ReplyDeleteI doubt the allocation listed in the article was an allocation he actually recommended. It looks like he backtested the allocation to find one that works.
ReplyDeleteDoes this mean it would have worked in other decades or will work in future decades? I personally doubt it.
Anyone can show an allocation looking backwards that looks good. The key is to have a methodology that works moving forward and to be open to new opportunities when they present themselves.
Trey