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I've seen this sentiment alot and i believe it's mostly right but it depends on who you are. There is no 'Best investment Strategy' for everyone. Should a 20-s

I've seen this sentiment alot and i believe it's mostly right but it depends on who you are. There is no 'Best investment Strategy' for everyone. Should a 20-something invest all his savings into crypto? Sure. Should a 45 year old with kids? hell no. If the 20-something losses all their savings, that sucks. If a 45 year old losses all their savings they have people to provide for. Which doesn't just suck, it's detrimental to his life and hapiness. A 20 something has 40 years to bounce back, a 45 year old has 15. Time horizions dictate risks that can be taken.

kqr 6y ago
But there is a best investment strategy: the one that maximises growth. A constant-fraction rebalanced portfolio has nothing to do with avoiding loss. It's purely about maximising growth. Such a portfolio, in the long run, outperforms all individual assets it is constructed from. I agree with your general sentiment. My reasoning to get there is different: I don't, for example, think anyone should invest all their capital into a risky asset. Not because it might crash, but because it performs poorly compared to the best investment (which is a balance weighted toward safe assets.)