And everyone knows how these market slices performed in the past. It’s dangerous to think that you have some special insight into how stocks will perform in the future. Your competition has billions in computing hardware, high-speed communication resources, and teams of PhD’s, looking to profit from every drop of market inefficiency. I wouldn’t expect to outperform the market based on a few PortfolioVisualizer runs.The data across multiple times samples, and multiple nations suggests tends to show that SCG is inferior to SCV, however only time will tell. Again for investors using Vanguard's small cap growth fund, they will not see that miserable performance because it does not truly represent the asset class it is intended to reflect, as it contains a substantial weight of mid cap stocks, at least that is the situation as I understand it.
The past is really irrelevant. What matters is the future. I am predicting that there will be periods where SCV will outperform SCG and periods that SCV will underperform SCG, such that they will average out to about the same. No black hole for SCG unless SCV is too.
I prefer to diversify with LCV, LCG, SCV, SCG, because I don’t know what the future holds.
Statistics: Posted by rkhusky — Sat Nov 23, 2024 7:25 am — Replies 112 — Views 11820