Hi guys!
I am trying to better understand how to properly diversify my investment portfolio. 21M and I will be graduating from school this spring. With the beginning of my career approaching, I want to make sure I'm investing my income correctly.
A little background: I've been contributing to a Roth IRA for a few years. My primary holdings mirror the S&P 500 (VOO), total market (VTI), and the Russell 2000 (VTWO). I have been looking into the recent performance of these funds and have noticed that their ups and downs more or less mirror each other.
I have looked into different types of index funds (emerging markets, REITs, small cap, developed markets excluding the US, etc.). I noticed that all of these indexes are supposedly meant to "diversify my portfolio" and "shield me from risk", but they all actually behave very similarly. For example, they all were hit hard by the 2008 crash, recovered well in 2009, climbed until they took a minor dip in 2016, and most recently have rebounded since they "bottomed out" in late December 2018.
I guess I expected the performance history of an emerging markets or small cap US index to look different than the S&P 500 for example. How can I really diversify my portfolio when all the asset classes seem to perform the same way? I am not a huge fan of commodities or crypto. I am not interested in bonds given my 30+ year time horizon until retirement. Thanks for all your help!
Submitted February 20, 2019 at 11:48AM by Bulky_Assistant https://ift.tt/2GTuOzr
