• DrunkenPirate@feddit.de
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    1 year ago

    Sure. But why not just staying with SP500? It gives more returns and, to a high degree, is to big to fail. Central banks will intervene before the money burns.

    • If safety is your reason for diversification, think about the central banks.
    • If returns is your reason for diversification, think about market share of US economy and SP500 returns.

    From August 2012 to mid-November 2023, my portfolio returned 7.6% annually or 4.8% per year after inflation. This is above my long-term return expectation of 4% per year after inflation for a diversified portfolio. However, it’s still far below what U.S. stocks returned over this same time period. From August 2012 to mid-November 2023, the S&P 500 returned 13.1% annually or 10.2% per year after inflation.

    For me, asset diversification seems to be the game of millionaires to stay rich. For getting wealthy for standard people growth stocks seem to be the best way.