New Year, and I’m spending some time looking back at the decisions that have worked well for my portfolio.
The S&P 500 is boring, but the 25-year chart is a masterpiece. Here’s the power of $SPX:
1. The Power of "Doing Nothing"
“Compound interest is the eighth wonder of the world. He who understands it earns it … he who doesn't … pays it,” Albert Einstein
2. The 25-Year Reality Check
If you invested at the peak of the Dot-com bubble in 2000, you survived:
The 2008 Financial Crisis
A global pandemic
Record-high inflation
Despite those "black swans," the index has historically trended up and to the right. Time in the market > timing the market.
3. Simplicity
A large part of your portfolio should be boring and automatic allowing you to focus on your career and life.
📈 NFA $SPY $VOO $VTI $IVV