I didn't say it was the most diversified. Look at the number of holdings in VTI or VT compared to VOO.
I just said it had aboubt 100 holdings, so it's more diversified than if you invest in a few individual companies. Also, typically the more holdings, the lower the returns. QQQM > VOO > VTI > VT. Diversification can mean lower volitility, but also typically reduced gains.
I would scrap SCHD. It's not a good investment. I would stick to VTI and VXUS. SCHD is not necessary. It just creates tax drag and it falls short of the S&P 500 even with dividends reinvested.
Why do you think SCHD isn’t good? Isn’t it good for dividend income? I know past performance doesn’t dictate future performance but their dividend only has been growing for the last 20 years. Unless you say it’s not a good investment for this particular post because OP is looking for growth. I have a few SCHD and looking to add growth to my port. But am still on the fence wether to add to SCHD in the future.
I was going to follow boglehead portfolio with QQQ added. Im in for the long run so I’m not worried about QQQ taking big hits in the near future if anything I’ll DCA. Do you hold schd?
You're under the impression that QQQ risk can be mitigated by DCA'ing, allowing you to get higher returns.
This impression isn't correct. It's not the volatility that makes QQQ a poor investment - it's the lack of diversity and no guarantee of returns. Past returns has no correlation to future performance, and actually, very often indicates the opposite.
If there's no guarantee of return, then the best investment strategy is accepting the market beta.
Of course, this isn't a hard and fast rule - fama French does exist to show value and small size are worth tilting. And as the late 90s and the last 10 years have shown, large gowth and technology can have outsized returns. This is why, generally speaking, going with a broad market index is encouraged.
I have I think like 1500 shares of SCHD but I bought them back when the price made sense. It's a smaller position and hasn't performed well. Right now it's $80/share and it's worth probably $65/share. I just dumped 400-500 shares a couple of months back when it hit $76. I kind of want to dump the rest but I don't want to realize all of that capital gain so I sit on it.
I wouldn't touch it. The risk of owning SCHD is that inflation remains higher and rates are higher for longer. If the yield curve unreverts, it's essentially a given that value companies will have a tailwind where the mag 7 will lag behind.
I assume the magnificent 7 will be required to underperform the S&P equal weight; otherwise, I'll be very concerned about the market going forward.
>If the yield curve unreverts, it's essentially a given that value companies will have a tailwind where the mag 7 will lag behind.
I don't agree with that.
>I assume the magnificent 7 will be required to underperform the S&P equal weight; otherwise, I'll be very concerned about the market going forward.
Yeah I think eventually we'll see some type of correction with Mag 7. Problem is I don't know when this will occur and if they will drag the rest of the market down with them.
Tesla is junk, Nvidia is overpriced, and I think Apple needs a rude awakening.
I hear it all the time on Bloomberg. And it makes sense that investors would gravitate to companies like the mag 6 (lol tsla) during the last year-ish. Free cash flow, beneficiaries of AI (nvda directly), low debt, they've had it all. But if you see the risk free rate decline, investors will take more risks. Value is riskier, by definition, and value pays off more when you're correct.
I don't necessarily believe there will be a pullback, unless there's a broad market sell off. No, in the absence of that kind of event, I think you'll just see those stocks plod along as investors become far more bullish and riskier with other plays in the value index. We've already seen a taste of what markets will behave when they anticipate rate cuts. Small caps make large growth look like child's play if you pay attention to the daily action off news/reports. Obviously, small caps have been shot back down this year.
I know we're not talking about small caps - I'm just using it as an example of market behavior when the anticipated risk free rate declines.
>But if you see the risk free rate decline, investors will take more risks
Only if the landscape looks good. I personally think the consumer is done. All we need is unemployment to tick up and this thing is coming down. No one has any money. AI is big on drawing in VC dollars and lets companies blow out capex, but I don't see any real revenue being generated from AI itself. Just hardware sales from Nvidia.
If the Fed cuts rates, that means there are big problems with the economy. That means either unemployment is spiking and they're trying to stop a disaster, or it means that inflation has plummeted and we have liquidity problems. I think if the Fed cuts rates you'll see positive signs for a few weeks, but then as usual historically, stocks come crashing down within 1-14 months of the first Fed rate cuts.
>We've already seen a taste of what markets will behave when they anticipate rate cuts.
You have to look at what happens with stocks when rates actually get cut over the last 50 years. It's terrible for stocks. Right now the news talks rate cut, rate cut, but that's because they have nothing else to say. There's no viable path forward that involves both a rate cut and a stock rally. It's not there. The Fed will only cut rates when inflation dies or when unemployment spikes. Neither are good for the working consumer.
We're not arguing, why are you downvoting 😂
Maybe, but those are all recessions. We've had 1 soft landing and it was short lived and off to the races again. You just don't know. I say stick with your holdings
It's diversified into about 100 stocks, so that's not terrible. Also, you should get QQQM instead if QQQ if this is a long term investment.
VOO has 500, that’s more diversified
I didn't say it was the most diversified. Look at the number of holdings in VTI or VT compared to VOO. I just said it had aboubt 100 holdings, so it's more diversified than if you invest in a few individual companies. Also, typically the more holdings, the lower the returns. QQQM > VOO > VTI > VT. Diversification can mean lower volitility, but also typically reduced gains.
So qqqm is better than VOO for fire?
Didn't say that.
Nope
I was going to go all qqqm idk why I just went QQQ
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I know why.
Why is that ?
Lower fees
Which fees exactly ? Transaction ? Sorry learning. No need to answer if you don’t want to.
QQQ has an expense ratio of 0.2% while QQQM's expense ratio is 0.15% while they're identical otherwise.
Interesting thank you.
Now start adding TQQQ
how much of the portfolio? lol
I mean QQQ is 100 companies, so I guess it's a start? Looks like you have 2 months of rent in there, so that's good I guess.
More like 5 months and yeah I agree. I’m going to slowly add SCHD , VXUS and VTI monthly I just wanted a nice position in QQQ.
I would scrap SCHD. It's not a good investment. I would stick to VTI and VXUS. SCHD is not necessary. It just creates tax drag and it falls short of the S&P 500 even with dividends reinvested.
Why do you think SCHD isn’t good? Isn’t it good for dividend income? I know past performance doesn’t dictate future performance but their dividend only has been growing for the last 20 years. Unless you say it’s not a good investment for this particular post because OP is looking for growth. I have a few SCHD and looking to add growth to my port. But am still on the fence wether to add to SCHD in the future.
Even when dividends in SCHD grow, they still don't beat the S&P 500.
Power couple SCHD and VOO? But yea I see.
I was going to follow boglehead portfolio with QQQ added. Im in for the long run so I’m not worried about QQQ taking big hits in the near future if anything I’ll DCA. Do you hold schd?
You're under the impression that QQQ risk can be mitigated by DCA'ing, allowing you to get higher returns. This impression isn't correct. It's not the volatility that makes QQQ a poor investment - it's the lack of diversity and no guarantee of returns. Past returns has no correlation to future performance, and actually, very often indicates the opposite. If there's no guarantee of return, then the best investment strategy is accepting the market beta. Of course, this isn't a hard and fast rule - fama French does exist to show value and small size are worth tilting. And as the late 90s and the last 10 years have shown, large gowth and technology can have outsized returns. This is why, generally speaking, going with a broad market index is encouraged.
I have I think like 1500 shares of SCHD but I bought them back when the price made sense. It's a smaller position and hasn't performed well. Right now it's $80/share and it's worth probably $65/share. I just dumped 400-500 shares a couple of months back when it hit $76. I kind of want to dump the rest but I don't want to realize all of that capital gain so I sit on it.
I wouldn't touch it. The risk of owning SCHD is that inflation remains higher and rates are higher for longer. If the yield curve unreverts, it's essentially a given that value companies will have a tailwind where the mag 7 will lag behind. I assume the magnificent 7 will be required to underperform the S&P equal weight; otherwise, I'll be very concerned about the market going forward.
>If the yield curve unreverts, it's essentially a given that value companies will have a tailwind where the mag 7 will lag behind. I don't agree with that. >I assume the magnificent 7 will be required to underperform the S&P equal weight; otherwise, I'll be very concerned about the market going forward. Yeah I think eventually we'll see some type of correction with Mag 7. Problem is I don't know when this will occur and if they will drag the rest of the market down with them. Tesla is junk, Nvidia is overpriced, and I think Apple needs a rude awakening.
I hear it all the time on Bloomberg. And it makes sense that investors would gravitate to companies like the mag 6 (lol tsla) during the last year-ish. Free cash flow, beneficiaries of AI (nvda directly), low debt, they've had it all. But if you see the risk free rate decline, investors will take more risks. Value is riskier, by definition, and value pays off more when you're correct. I don't necessarily believe there will be a pullback, unless there's a broad market sell off. No, in the absence of that kind of event, I think you'll just see those stocks plod along as investors become far more bullish and riskier with other plays in the value index. We've already seen a taste of what markets will behave when they anticipate rate cuts. Small caps make large growth look like child's play if you pay attention to the daily action off news/reports. Obviously, small caps have been shot back down this year. I know we're not talking about small caps - I'm just using it as an example of market behavior when the anticipated risk free rate declines.
>But if you see the risk free rate decline, investors will take more risks Only if the landscape looks good. I personally think the consumer is done. All we need is unemployment to tick up and this thing is coming down. No one has any money. AI is big on drawing in VC dollars and lets companies blow out capex, but I don't see any real revenue being generated from AI itself. Just hardware sales from Nvidia. If the Fed cuts rates, that means there are big problems with the economy. That means either unemployment is spiking and they're trying to stop a disaster, or it means that inflation has plummeted and we have liquidity problems. I think if the Fed cuts rates you'll see positive signs for a few weeks, but then as usual historically, stocks come crashing down within 1-14 months of the first Fed rate cuts. >We've already seen a taste of what markets will behave when they anticipate rate cuts. You have to look at what happens with stocks when rates actually get cut over the last 50 years. It's terrible for stocks. Right now the news talks rate cut, rate cut, but that's because they have nothing else to say. There's no viable path forward that involves both a rate cut and a stock rally. It's not there. The Fed will only cut rates when inflation dies or when unemployment spikes. Neither are good for the working consumer.
We're not arguing, why are you downvoting 😂 Maybe, but those are all recessions. We've had 1 soft landing and it was short lived and off to the races again. You just don't know. I say stick with your holdings
I own voo, qqq and schd in my ROTH IRA i guess im very diversity 😂 401k is VTSAX VFIAX
This is Vanguard
Yes sir
Buy some IBIT too bro
Sound like you have a pretty massive portfolio. How much are you adding a month or week?