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It's been interesting to review my portfolio, such as it is, against this situation, and see that I'm down relatively little. Not because I've bet against anyth
by zhengyi13 6mo ago
It's been interesting to review my portfolio, such as it is, against this situation, and see that I'm down relatively little. Not because I've bet against anything per se, but I made a conscious decision years ago to diversify out of the SP500 ("VTSAX and chill!") into broader and exUS indices.
- loeg 6mo agoThe broader US market is only about 25% bigger than the S&P500, FWIW. (Or put another way, S&P500 is about 80% of all US equity.) They also trade in almost lockstep: https://totalrealreturns.com/n/VFIAX,VEXAX?start=2025-01-01 https://totalrealreturns.com/n/VFIAX,VEXAX?start=2025-01-01
- IAmBroom 6mo ago"Almost". This is specifically one of those points in stock history where it isn't true; the heavyweights of the S&P 500 are dragging it down while the smaller companies are less affected.
- loeg 6mo agoI brought a graph in my earlier comment! Even over the past year, they're highly correlated. (And the S&P500 is ahead over the period -- not the other 25%.)
- readthenotes1 6mo agoAren't most exUS stocks dominated by the US economy? Getting mostly out of hateful 8 hype isn't bad though when they're going down... https://investor.vanguard.com/investment-products/etfs/profile/veu https://investor.vanguard.com/investment-products/etfs/profi...