Poll

POLL Small Cap Tilt or NO

I tilt Small Cap!
12 (50%)
No way - I own the market alone!
12 (50%)

Total Members Voted: 24

Author Topic: POLL Small Cap Tilt or NO  (Read 2565 times)

heybro

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POLL Small Cap Tilt or NO
« on: May 18, 2016, 11:02:25 PM »
Tilt small cap or own total market only?

peppaz

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Re: POLL Small Cap Tilt or NO
« Reply #1 on: May 20, 2016, 12:51:16 PM »
I enjoyed these articles when they came out

http://www.nytimes.com/2013/02/02/business/a-prize-winning-plan-for-investing-when-interest-rates-are-low.html

http://www.nytimes.com/2011/10/29/your-money/the-best-investing-advice-maybe-not-the-conventional-method.html


My opinion is, if you have many decades to retirement, a sizable portion of your long term investments should be in Small Cap Value and Growth index funds.
« Last Edit: May 20, 2016, 03:27:48 PM by peppaz »

bobechs

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Re: POLL Small Cap Tilt or NO
« Reply #2 on: May 20, 2016, 01:27:42 PM »
I enjoyed these articles when it came out

http://www.nytimes.com/2013/02/02/business/a-prize-winning-plan-for-investing-when-interest-rates-are-low.html

http://www.nytimes.com/2011/10/29/your-money/the-best-investing-advice-maybe-not-the-conventional-method.html


My opinion is, if you have many decades to retirement, a sizable portion of your long term investments should be in Small Cap Value and Growth index funds.


Interesting articles, for sure.

But choosing a fairly agressive, stock-heavy portfolio and then looking back four or five years later on gains earned in a rising market, while satisfying,  doesn't necessarily indicate wisdom; choosing red or black at the roulette wheel could be as effective.  Well, more effective really -- just terrifyingly risky.

And what happened to the resurgence of inflation the Duke students were expecting and preparing for?

In another thread, one of our posters has licked the whole risk-return thing in a most peculiar way:

http://forum.mrmoneymustache.com/investor-alley/short-term-annuities/msg1092597/#msg1092597

forummm

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Re: POLL Small Cap Tilt or NO
« Reply #3 on: May 20, 2016, 01:55:22 PM »
I think it's likely that the small cap returns will be more in line with the rest of the market since it's now so easy to invest in them cheaply. I believe that a big component of prior periodic outperformance is due to being compensated for the illiquidity and higher transaction costs of investing in small caps the past. Now you can just buy as much as you want of an index fund and pay a handful of basis points per year.

peppaz

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Re: POLL Small Cap Tilt or NO
« Reply #4 on: May 20, 2016, 03:31:45 PM »
Quote

But choosing a fairly agressive, stock-heavy portfolio and then looking back four or five years later on gains earned in a rising market, while satisfying,  doesn't necessarily indicate wisdom; choosing red or black at the roulette wheel could be as effective.  Well, more effective really -- just terrifyingly risky.

http://forum.mrmoneymustache.com/investor-alley/short-term-annuities/msg1092597/#msg1092597

Isn't that the fundamental principal of long term (20 year+) index investing in your retirement accounts, ie the lazy 3 or 4 fund portfolio?

I'm just saying to weight the bottom of the market slightly higher in your overall mix.

heybro

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Re: POLL Small Cap Tilt or NO
« Reply #5 on: May 21, 2016, 12:25:03 AM »
wow - I LOVE that this poll keeps being TIED!!!!!!!!