Is all of, or most of your portfolio only in the S&P 500? The S&P 500 is made up of larger US companies (typically greater than $20 billion market capitalization).
If your portfolio is only U.S. large-cap stocks, you might be missing big opportunities — and taking unnecessary risk.
• In the last 15 years, the S&P 500 was the top-performing asset class only 3 times — and 2 of those years were in 2023 & 2024.
• Before 2023? The top performing asset class only once since 2010.
• From 2000–2009 (the “lost decade”), the S&P 500 had a negative return.
• Emerging Markets: +9.78% annualized
• U.S. Small Cap Value: +8.27% annualized
• U.S. Large Cap Value: +2.47% annualized
• International Developed: +1.63% annualized
I’m not going to disagree that the S&P 500 has pretty much CRUSHED everything in its path over the last 10 – 15 years, what I am saying is that there have been periods of time where it’s significantly lagged other asset classes.
We don’t want our clients to only be exposed to a singular country or asset class – this can dramatically hinder your portfolio, especially if you are taking distributions from your accounts.
You need a customized investment approach that aligns with your goals, tolerance, and time horizon.
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