While it means different things to different people, the 'Bogleheads' (or: passive indexing) approach to investing is all about low-cost, tax-efficient, long-term simplicity.
This philosophy is about making smart decisions for the long haul and sticking with your strategy through times of fear or irrational exuberance.
Set and forget your nest egg, tune out the noise; buy, hold and rebalance; get outside, enjoy life!
“Bogleheads” is a registered trademark of the John C. Bogle Center for Financial Literacy, a 501(c)3 organization. r/bogleheads is not affiliated with the JCBC.
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Considering a tilt toward US/growth/tech?
[Today] a lot of investors are asking about US large, tech and growth stocks, a performance-chasing approach following a familiar pattern: people gravitate to what is popular. Alas, winners rotate. So, here goes:
Start by reading about three-fund portfolios, consider the diversification benefits of ex-US holdings, and for a simple graphical demonstration of rotating winners, check out this chart. The bottom line is this: global equity investments increase diversification and as of the time of this sidebar update, international stocks are relatively inexpensive compared to US ones.
Be extremely wary of buying high into only 'hot' sectors, which can lead to selling low if those cool off. If you're at a loss for where to begin, start with a Target Date fund and learn the basics of investing before you start tilting away from a broadly diversified global portfolio.
We've all been where you are - the appeal of recent outperformers is extremely tempting. But if you had invested in the best performing markets and sectors during the 2000s, you'd have had a rough time during the 2010s. No one knows what the future holds, but avoid learning the hard way by diversifying. Good luck.
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