Mr. Merriman, For young investors do you think it’s okay to have 100% equities and to hold off on buying bonds until later? Also do you think it’s safe to buy more value or small cap value when you’re young? I turn 30 in a week and I currently have over 90% of my portfolio ($65K) in small-cap value with the rest being in large and mid-cap value. No bonds. Since large-cap growth has outperformed in recent years I wanted to take advantage of this by loading up on as much small-cap value as possible while it is “cheap” compared to large-cap growth before the market eventually returns to the mean. Do you think this is a good or bad decision on my part? I always enjoy your content and so I was hoping to get the opinion of someone I deeply respect and admire. Thank you for everything you do sir!
I moved some money from blended funds over to value early this year and I've already seen the difference (my portfolio has fallen far less than my friends that remained in blend and growth. Obviously, this doesn't mean much because we're talking about less than a year, but your quilt charts tells the tale over time. I all in on the 4-fund strategy, except it's a 6-fund strategy for me because I also include mid-caps for even better diversification.
SCV is understandably a good idea from a long term historical perspective even though it hasn't done well over the last 15 years or so. I question LCV however. I'm only comparing the last 11.5 years with two popular ETFs, but over the course of that time LCB outperformed on most years, yielding a 324% return over the entire period rather than 280%. and the max drawdown, while it was slightly more favorable with SCV at 33.4% rather than 34% with SCB, isn't that much different. I found a different LCV ETF with a longer track record and went back 19.5 years. Same story...actually this one had a consistently worse max drawdown. Why LCV?
Hi Paul … congratulations! I’m investing the bulk of my 401k (in service IRA rollover) within M1 in the Ultimate Buy & Hold portfolio at 50% equities at an 80% US/20% Intl. Currently 60 looking to retire in 5 years. 2 questions … in this “inflationary” environment, does it make sense to reduce bond durations to Short term and increase the Short term TIPS? I realize this is sort of a market timing. On the flip side, thoughts on an ETF such as SWAN that holds 90% IT Treasuries combined with an S&P Leap option set at 70%; supposed to provide some upside with a 90% break from the Treasuries to lessen the downside in a market downturn. Do you ever think it makes sense to hedge slightly with the market at historical highs? Thanks for listening. I guess it’s the pre-retiree jitters.
No bonds. 100% equities. You will lose money on bonds in this inflationary environment. It’s that simple. And don’t overthink the ETF situation either. Just buy and hold low-cost well-diversified Vanguard ETFs like VTI, VOO, VT and VBR and you’ll be set. Best of luck.
@@nickwilsonxc Of course it's true, you can go to the website and read up. I THOUGHT YOU KNEW! Oh what about that 16 years from 2000-2016 where 10yr Treasuries beat the US equities market???!!!
TH-cam algo brought me here, looks like I hit a gold mine. Paul, your Wisdom is worth millions of subscriber. Thankyou for sharing
You are absolutely life-changing Mr. Merriman! Thank you!
Paul, you are a great source of investment wisdom and knowledge.
Loved this, Paul! Everyone should see this and learn before graduating college and starting their career.
Mr. Merriman,
For young investors do you think it’s okay to have 100% equities and to hold off on buying bonds until later? Also do you think it’s safe to buy more value or small cap value when you’re young?
I turn 30 in a week and I currently have over 90% of my portfolio ($65K) in small-cap value with the rest being in large and mid-cap value. No bonds. Since large-cap growth has outperformed in recent years I wanted to take advantage of this by loading up on as much small-cap value as possible while it is “cheap” compared to large-cap growth before the market eventually returns to the mean. Do you think this is a good or bad decision on my part? I always enjoy your content and so I was hoping to get the opinion of someone I deeply respect and admire.
Thank you for everything you do sir!
I moved some money from blended funds over to value early this year and I've already seen the difference (my portfolio has fallen far less than my friends that remained in blend and growth. Obviously, this doesn't mean much because we're talking about less than a year, but your quilt charts tells the tale over time. I all in on the 4-fund strategy, except it's a 6-fund strategy for me because I also include mid-caps for even better diversification.
Thank you for this. I learned a lot and will investigate more the small cap value position in my portfolio. I also want to study the 4 fund portfolio.
Well done presentation
thank you
28:01 "Suzanne HELP!!!"
That was the best moment of the video 😂. Thank you Suzanne!
Hello Mr. Merriman. Is a portfolio composed of 50% US-mid-cap-blend ETF and 50% US-mid-cap-value ETF basically the same as the US 4-fund combo?
Could we have an answer to this please
No, it's not the same.
WOW what a great presentation!
Small cap value can change your life !
Great video...thank you.
So which funds do we pick from????
SCV is understandably a good idea from a long term historical perspective even though it hasn't done well over the last 15 years or so.
I question LCV however. I'm only comparing the last 11.5 years with two popular ETFs, but over the course of that time LCB outperformed on most years, yielding a 324% return over the entire period rather than 280%. and the max drawdown, while it was slightly more favorable with SCV at 33.4% rather than 34% with SCB, isn't that much different.
I found a different LCV ETF with a longer track record and went back 19.5 years. Same story...actually this one had a consistently worse max drawdown. Why LCV?
I got into VB which is a small blend. It was better discounted than the rest especially VBR, which is small value.
How do you determine “better discounted.
So amaing
Did international small cap value outperform the s&p 500 as well or was it only us small cap value that outperformed?
Where is the link to the .PDF file??
It is now in the video notes and here it is also- paulmerriman.com/wp-content/uploads/2021/10/AAII-10-1-2021.pdf
@@PaulMerrimanSoundInvesting Thank you for this presentation and making this power point available in pdf.
I love you to!
Hi Paul … congratulations! I’m investing the bulk of my 401k (in service IRA rollover) within M1 in the Ultimate Buy & Hold portfolio at 50% equities at an 80% US/20% Intl. Currently 60 looking to retire in 5 years. 2 questions … in this “inflationary” environment, does it make sense to reduce bond durations to Short term and increase the Short term TIPS? I realize this is sort of a market timing. On the flip side, thoughts on an ETF such as SWAN that holds 90% IT Treasuries combined with an S&P Leap option set at 70%; supposed to provide some upside with a 90% break from the Treasuries to lessen the downside in a market downturn. Do you ever think it makes sense to hedge slightly with the market at historical highs? Thanks for listening. I guess it’s the pre-retiree jitters.
I bonds yo!
No bonds. 100% equities. You will lose money on bonds in this inflationary environment. It’s that simple. And don’t overthink the ETF situation either. Just buy and hold low-cost well-diversified Vanguard ETFs like VTI, VOO, VT and VBR and you’ll be set. Best of luck.
@@nickwilsonxc I bonds are double inflation rate yo! ^_~
@@muffemod Even if that is true you’re always better off in equities unless you’re near retirement age.
@@nickwilsonxc Of course it's true, you can go to the website and read up. I THOUGHT YOU KNEW!
Oh what about that 16 years from 2000-2016 where 10yr Treasuries beat the US equities market???!!!
26:00 goldmine