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!
Small Caps
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- buddtholomew
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Re: Small Caps
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.
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.
- Kriegsspiel
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Re: Small Caps
Who cares where the profits are earned.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!
Re: Small Caps
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
Play with asset allocations on Tyler's site: https://portfoliocharts.com
Don't agree with me too strongly or I'm going to change my mind
Re: Small Caps
Having moved my Roth to Fidelity, I think I'm going to try iShares small cap growth. Trades for free.
Re: Small Caps
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.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!
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.