I don't know if it's the bubbles I'm in or what social media feeds me, but it seems like everyone is either a high-stakes crypto/AI gambler, or someone who only advocates dumping everything into a basic market index and leaving it forever.
I haven't used the particular tracker before, but I picked the default date ranges and just picked a couple of high-risk plays for a two percent allocation (Bitcoin and Tesla). I think there's no denying these were highly volatile and highly-valued. But even if they went to zero it would have a minimal impact on the portfolio.
But the returns were several percent better than VOO/SPDR. And a 98% VOO +2% high-risk also outperforms BrkB, while being significantly more diversified.
I think anyone who's trying to "play it safe" would be ecstatic to beat the market by 3% by only risking 2% of their allocation.
(I haven't tried it but suspect you could have a portfolio of 70% bonds 30% high-risk and do well with a capped drawdown).
Submitted June 08, 2024 at 09:57PM by IndubitablePrognosis https://ift.tt/xGCt07b
