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Small Caps

Posted: Sat Feb 24, 2018 10:01 am
by Jeffreyalan
I apologize if this has been answered in a thread before, but since the PP is supposed to sort of be domestically oriented and most large cap companies are global in nature, would it make more sense for the stock portion to be geared towards mid and small cap stocks?

Thanks in advance for any opinions!

Re: Small Caps

Posted: Sat Feb 24, 2018 12:53 pm
by buddtholomew
Sure, LC companies do a lot of business internationally, but I would still consider Apple and Amazon US-based entities.

If I recall HB recommended holding the stock market (TSM, S&P500,etc) so that when stocks rise, the 25% allocated to equities rises too. You want to avoid tracking error since other components of the portfolio are included for scenarios where equities are declining.

Hope that helps.

Re: Small Caps

Posted: Sat Feb 24, 2018 7:39 pm
by Kriegsspiel
Jeffreyalan wrote:I apologize if this has been answered in a thread before, but since the PP is supposed to sort of be domestically oriented and most large cap companies are global in nature, would it make more sense for the stock portion to be geared towards mid and small cap stocks?

Thanks in advance for any opinions!
Who cares where the profits are earned.

Re: Small Caps

Posted: Sat Feb 24, 2018 9:08 pm
by eufo
I use small and mid caps in my portfolio instead of the broad market. Over time they tend to outperform, but are more volatile.

Play with asset allocations on Tyler's site: https://portfoliocharts.com

Re: Small Caps

Posted: Sat Sep 01, 2018 7:35 am
by ochotona
Having moved my Roth to Fidelity, I think I'm going to try iShares small cap growth. Trades for free.

Re: Small Caps

Posted: Tue Sep 04, 2018 5:34 pm
by Kbg
Jeffreyalan wrote:
Sat Feb 24, 2018 10:01 am
I apologize if this has been answered in a thread before, but since the PP is supposed to sort of be domestically oriented and most large cap companies are global in nature, would it make more sense for the stock portion to be geared towards mid and small cap stocks?

Thanks in advance for any opinions!
There is a bit of a debate over the small cap factor being useful, but other evidence suggest if you pull the pure crap out then it does outperform large cap. Check out IWM vs. IJR performance.

As noted...no free lunch, comes with more volatility.

Personally I think now is a good time to start watching for an emerging markets position.

Re: Small Caps

Posted: Thu Sep 24, 2020 7:55 pm
by Kbg