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I agree with bsmith. SCV is riskier, and in theory provides better returns. You can minimize the risk a little by tilting a little, like Paul Merriman recomme
by zie 6y ago
I agree with bsmith. SCV is riskier, and in theory provides better returns. You can minimize the risk a little by tilting a little, like Paul Merriman recommends.
As long as we are performance chasing[0].. CAGR 27.22%! or Bitcoin before the pop, or any of the big FAANG's alone :)
Obviously I'm not suggesting you actually buy and hold UPRO 100% AA.
The problem is, we have no idea what the future holds, and can only guess. Buying the market(VTSAX/VTI) is the next best thing, you can't really do wrong, but you also won't "win" in the sense that you only get winners. Or VT if you want the global market.
0: https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&showYield=false&reinvestDividends=true&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=UPRO&allocation1_1=100 https://www.portfoliovisualizer.com/backtest-portfolio?s=y&t...