Comment by cinquemb
6 years ago
Even assuming that's true, one can't say the sort of risk and investor took on 15 year look-backs since WWII has been evenly distributed to get some sort of acceptable return, nor can one say that this will continue hold true for the next 15 years. You may believe it hold true though, and many do… but very few will do their homework on the risks to their "diversification" and their own changing liquidity constraints that will occur over the "sufficiently long time-horizon"
> assuming that's true,
Don't assume. You can calculate it in spreadsheet.
> You may believe it hold true though,
In the long run we are all dead. We don't need to believe they hold true. Certainty is not part of this world. Because you never know is just rhetorical argument. Quantifying risk and going on that is good enough.
>Quantifying risk and going on that is good enough.
Because most people who are blindly buying indexes around the world thinking they are diversified and DCA are certainly doing that…