“0% S&P 500
20% Small Cap Index
30% Non-US stock index
30% Fixed income”
maybe a naive question how do you think it would change if instead of an index you choose a few stocks in each of the class?
Do we need the full diversification of the class or can we choose a few that we think are the best?"
Obviously you didn’t read the post well. It said INDEX funds. SP500 is an index fund
20% small caps INDEX
30% non-US stock index
And obviously, picking a ‘few’ leaves you at terrible risk of specific stock meltdown.
The answer is NO, NO, NO…
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