FSD, what have you indexed since ’00? S&P 500 and Russell 2000, 50%/50%, like I did until 2 1/2 years ago? S&P has been dead flat since ’00. Russell is up 60% since ’00. 50% at 0% + 50% at 60% over six years = 6% per year. How can you call that “…worked out OK…”? 6% okay? Up your standards, sir.
Yes, I will take that 6% per year in a period that included an 80% decline in some tech stocks, a recession, a terrorist attack on US soil, two wars, the worst stock market performance in a a couple generations, and a period in which cash paid about 2% up until the last 2 years.
Yes, I’d call 6% per year working out OK.
TO answer your quesiton :
I have used SPY (S&P500) and VTI (Wilshire 5000) as my primary stock holdings since 2000. However, I don’t blindly index. These make up the primary portion of my stock holdings, but not all of them. I occasionally buy stocks, funds, and ETFS, including international (e.g. EFA, EWJ) to balance risk and move to/from cash on occasion.
For example, today S&P 500 and Wilshire make up about 35% of my total (over half of my stock allocation). In 2004, these indexes accounted for 45% of my portfolio, which was ~80% stocks.
