By Dr. Jim Dahle, WCI Founder

I have seen a large number of forum discussions in the last year that basically consist of an investor expressing regret about an investment they own that has been “underperforming.” When you dive into the details, the investment is fine and the “underperformance” is only in comparison to US large growth stocks like the “Magnificent 7.” The investment being compared to those stocks, however, varies. I’ve heard essentially the same argument being used against broad market index funds, real estate, international stocks, small value stocks, and even bonds.

I thought it might be worth a few reminders today about why you own some of those other assets.

 

The Pendulum Swings

Just about every reasonable asset class will have its day in the sun. Investments are cyclical. US large growth stocks did great in the 1990s and then terrible in the 2000s.

Keep reading this article on The White Coat Investor.

Leave a Reply