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The gains from VTSAX over the past 5 years are so high that it would have to permanently drop by 50% to match international indexes like VTIAX.
by Salgat 2y ago
The gains from VTSAX over the past 5 years are so high that it would have to permanently drop by 50% to match international indexes like VTIAX.
- jdlshore 2y agoThe point of passive investing and a balanced strategy is that you can’t predict what will happen. So, yes, the past five years were good for VTSAX. But if you’re investing today, then it’s the next five years that matter, not the past five years, and nobody can predict what will happen. (Well, to be more accurate, some fund managers will predict correctly, but you can’t predict which ones. Just like you know ~50 out of 100 coins will land heads, but you can’t predict which ones, not even if you choose the one that landed heads in the last 6 throws.)
- Salgat 2y agoI'd still stay with VTSAX if you're investing long term given the 8% expected long term returns.