I tried different allocation and types of accounts for like 15 years and this thing w portfolio diversification is driving me nuts.
No matter what I did all types of Portfolio went up at the same time during great times and the oposite when the downturns.
I’ve tried managed accounts w different risk levels. I’ve tried the vanguard common diversification, and also the choosing random stocks based on fundamentals etc.
And all go up and down about the same percent give or take a few percent points.
Bonds and reit where mentioned as safe on certain times.
Non USA stuff for less risk on domestic.
Large cap safe and dividend stuff for other times and so on.
It’s just a crap shoot at this point.
If I ride all these different trends (like energy and cpu now) vs a “diversified portfolio” I’d be about the same in 10-40 years imo.
Has this type of “basic strategy” changed over the years thanks to the feds QE or something ? Where bonds , mortgage/reit etc don’t follow past trends?
Or what strategy works inside a diversified portfolio that I might be missing ?
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