Hi Lizzie, thx for the info. I guess I haven't been feeling it as much as these numbers say. I was up 28.5% in 2003, 10.5% in 2005, and am up 9.3% this year. So you say it was like the 70's, but I'm not seeing it. If your portfolio is well-diversified, then some areas like small caps, REITs, utilities, energy, and bonds for that matter, have more than made up for the lackluster large cap stock performance.
Now if you have been mostly concentrated in tech stocks or large caps for the last 5 years, then I can see how this market must look horrible for you. I've been investing for 25 years now, and I can tell you from the school of hard knocks, that diversification is so critical. I lost money in 2001 and 2002 like everyone else, in large part because I allowed myself to get overweight in large caps and tech, but I fixed that at the end of 2002 and have been pretty darn happy with my returns since then.
So why do you say this is like the 70's? What areas are you mostly invested in that makes it feel like that? |
