Well then, what did great in the 13 years prior to 2010? It was not tech or the S&P 500, but instead US small value and emerging market stocks. If someone had the same mentality as you and only needed the money for the next 15 years from 2010 to 2025, they would have considered both those categories of high performing stocks. Unfortunately, those underperformed the S&P 500 from 2010 through today in 2024 (they would have underperformed tech by even more):So I was backtesting VGT and VOO in the website below.
https://www.portfoliovisualizer.com/bac ... sisResults
What I realized is VGT beat VOO in every year since 2010. That is 13 years of constantly beating the SP500 index.
I realize the volatility is much more. So if there is any downturn, technology is down more than SP500. But for someone like me who does not need the money next 15 years, why don't I allocate all or more to VGT?
emerging markets underperformed the S&P 500 by over 10% per year.
US small value stocks underperformed the S&P 500 by over 2% per year.
It isn't that easy to just pick winners based on even a decade's worth of performance.
Statistics: Posted by TimeIsYourFriend — Wed Jun 12, 2024 5:47 am