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by misnamed
3202 days ago
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1. Diversify into bonds to reduce stock risk and volatility (either a Total Bond or Treasuries fund) 2. Diversify globally to avoid single-country political,
economic and geographical risks (add Total International to balance your domestic stock) 3. If you really want to, buy a commodities ETF to further diversify (generally not recommended at more than 10% of portfolio and not a big deal either way) 4. But we've already seen that after fees they come out behind, so their 'better information' isn't translating into higher returns The idea that 'too many indexers will kill indexing' has been around for a while and debunked for an equally long time. Here's a source for that: http://www.etf.com/sections/index-investor-corner/swedroe-ne... At the end of the day, there's just no need to get crazy with things. Indexing works. It's reliable. You can sleep at night. I can't really imagine putting my money in the hands of a manager (or set of them). What if they get sick, or bored, or were just lucky early on? No need to add that layer of risk. |
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