Post by FD1000 on May 7, 2023 5:39:28 GMT
May 7, 2023 1:14:30 GMT @waffle2 said:
In the late 60s, 70s and early 80s inflation and Federal rates were all over the place. The Fed thought it had inflation beat so it lowered rates then inflation went higher than before. When the Fed had rates high enough to start beating back inflation money markets showed a real return. When they slacked off and inflation came back they showed a real loss. Here is a chart of inflation vs. Fed rates. www.thebalancemoney.com/u-s-inflation-rate-history-by-year-and-forecast-3306093
In Nov 1968 the S&P 500 was 924. It didn't get close to that again until Apr 1993 when it hit 922. www.macrotrends.net/2324/sp-500-historical-chart-data
How about a lost 25 years for the S&P 500.
We don't need to go far in memory lane. The SP500 lost a total of 10% during 2000-2010, Value+SC+International worked.
I don't believe in indexes and buy and hold FOR ME. I have used good risk-adjusted funds and made about 9% annually investing mainly in OAKBX,FAIRX,SGIIX at that time.
I especially like flexible managers, PRWCX is fund I mentioned many times in the last 10 years.
You can also dedicate a portion of your portfolio to "invest based on markets". In 2022 HDV made 7% while SPY lost 18. YTD, SPY made 8% while QQQ made 21%. So, in less than 1.5 years, you could do 35% more. Even if you made just 10-15% more it's still meaningful. This also goes well with non diversified concentrated portfolio. If I see that SC or international don't do as well, why do I have to own them?