Comment by jncfhnb
2 months ago
Folks have an unhealthy mentality about beating the market, imo. You don’t need to beat the market if you’re not a fund manager trying to advertise your record. You just need to do well.
The market is up 27% YTD. Most global trends suggest, to me, a greater centralization of wealth into the US. Just dumping everything into the SP500 is likely more than great for 99% of people for the near future.
I completely agree. Diversified low cost index funds are amazing. Matching "the market" has been a spectacular risk/return for a long time now.
(And to be clear, I keep approximately all of our investments there. But I have a small puddle I play with to remind myself not to play with real money. :-)
You are correct. You just need to beat inflation. (So 27% vs. 2.7%? Pretty sure anyone can be a Wall Street wolf these days.)
Just because the SP500 did +27% this year does not mean it will continue to do so.
Historical data shows a more nuanced picture.