- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Investing for the long term
Posted on 8/5/11 at 12:54 pm to eelsuee
Posted on 8/5/11 at 12:54 pm to eelsuee
If you had a diversified portfolio including total US equity market, international, emerging markets, small/mid value, intermediate T's and TIPS, total bond market, IG corps---you would have done very well reinvesting dividends and adding new money. Very rarely do investors invest all the money they will ever invest in the market on one certain date.
The Ben Graham 25/75 guideline would have served you well. Ie, be at the low end when the market is high or irrationally priced and add more risk when the market is at historically favorable levels. I mean, shite, people can do this in their 401ks at will, it is not difficult. You have to use some foresight, have a plan and stick to it.
The Ben Graham 25/75 guideline would have served you well. Ie, be at the low end when the market is high or irrationally priced and add more risk when the market is at historically favorable levels. I mean, shite, people can do this in their 401ks at will, it is not difficult. You have to use some foresight, have a plan and stick to it.
2
Posted on 8/5/11 at 1:21 pm to tirebiter
quote:That isn't relevant since the market from 1999 to now has averaged about the same as in 1999. If your money was invested with a uniform distribution over that time, it would average out about the same as if you stuck it all in the market in 1999.
Very rarely do investors invest all the money they will ever invest in the market on one certain date.
Now, I am neglecting dividends, which I would assume over the entire market is between 1 and 2 percent, but that is a straight guess.
I would also guess bonds have performed better over the last decade, however the "historical knowledge" of getting 8% to 10% return over the long term will require some major gains in the next 10+ years to stay true.
Posted on 8/5/11 at 3:27 pm to tirebiter
quote:
If you had a diversified portfolio including total US equity market, international, emerging markets, small/mid value, intermediate T's and TIPS, total bond market, IG corps---you would have done very well reinvesting dividends and adding new money.
This is correct. I happen to know that because that is in fact what I did and did reasonably well over the period. The sectors I chose aren't quite the same but it's the same basic idea.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News