The only thing that matters is whether your portfolio is providing enough growth to meet your future financial needs. If you are unable to meet your financial needs with your current returns then, yes, underperformance feels terrible. However, your absolute performance is what you should care about.Nick Maggiulli
Save like a pessimist means you acknowledge the cold statistics of how common bad news is. It’s common at the global, national, local, business, and personal level. Save heavily, knowing with certainty that you’ll need a cushion to deal with the next banana peel. Be a little bit paranoid, knowing the assumptions you hold today could break tomorrow, and you’ll need enough room for error to make it to the next round.Morgan House
Fundamentally, we aren’t nearly as stupid and ridiculous as often portrayed within behavioral finance. We are no homo economicus, but we aren’t imbeciles, either, as the astonishing discoveries and innovations of science demonstrate, to pick just one big and obvious example.
US funds are hot right now. There have been several launches in the past year and several coming up. Flows have been going too, partly or mostly because US equities have first brutally beat up and murdered other equities. But will this last? Of course, these things can never be predicted. But it pays to be conservative about future returns. Not every day can be a Diwali.
U.S. equities outperformed their international counter-parts by 8 percentage points per year on average over the 10 years ended December 31, 2019. However, our proprietary Vanguard Capital Markets Model (VCMM) suggests that this outperformance is unlikely to persist over the next 10 years.
Much of what investors do today is pay 1% for things such as portfolio management which are free 😐