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by pushrax 1757 days ago
The variance in potential outcomes of holding VOO is much, much lower than the variance of holding crypto.

Buying VOO buys a share of the profits of the work of many millions of people. It also speculates that other people will continue to want to buy those profits.

Buying a token only speculates that more people will want to buy that particular token. It's much harder to project that people will continue to want it.

1 comments

Oh yes. So that's why half-half.
A risk parity approach would say more like 95% to 5%, but that works too.
Oh sure, one half can be bigger than the other half.