Hello,
I am 28 and targeting a FIRE number of 2.5M. I am an aggressive saver at about a 60-70% rate the past 2 years. I have about 100k in student loans and double that amount in assets. I have been primarily an all SPY investor and maybe 5% of my portfolio in gambles like Apple or Exxon and 5% in crypto and 10% in a US small cap ETF.
I am thinking given the incredible returns of SPY and also small cap ETFs. The small cap ETF over the past has become a full 5% more of my portfolio than it used to be.
I am thinking I should re-balance but unsure how I can do this mathematically . I did not really set an investment policy so my portfolio allocation has just grown to these amounts over time.
Additionally there is an article here about US not returning the same amounts over the next decade and it looks like the USA has totally broken with the rest of the world in terms of equities returns. How would you think about potentially integrating Vanguard Ex US into a portfolio. It seems like VEU and VTI both got hammered in 07 with 50% drawdowns just like SPY so I am struggling to understand how diversification actually helps