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55241864 No.55241864 [Reply] [Original]

Could we have a serious thread on MSCI vs SP500?

I have simple Boglehead portfolio of:

80% Vanguard Global Stocks (MSCI)
10% Vanguard Global Bonds
10% Vanguard Emerging Markets

Im considering selling it all for 100% SP500.

I mean what's the point? Does it really matter that much the extra diversification you get? What could go wrong if I just go 100% SP500? Im an eurofag with 440k€ saved. To double my money the SP500 would need to be 8200 which is depressing, it wouldn't even be a million yet, but with the Boglehead portfolio, I get a peace of mind that at least even if it's even slower, you get less risk via extra diversification, however, im starting to thing it doesn't make that much sense and you are just throwing away extra gains for a deluded scenario where the USA stops being the top dog, but then again, what if it happens?

>> No.55241877

>frog thread
No. Gtfo. Stop spamming. Go underground. Stay underground. Drop the frog if you want to ever get serious feedback ever again

>> No.55241900

Dont put all your eggs in one basket

>> No.55241912

>>55241900
But the SP500 is 500 baskets. Is Warren Buffet insane enough to put his entire networth here? (that's what he will leave to his family as inheritance, 90% SP500 and 10% bonds, im not sure what the 10% bonds do but basically it's almost all in on SP500)

As a matter of fact if I had Warren's wealth I would diversify all over the world but we poorfags have to take some extra risk to get anywhere.

>> No.55241913

>>55241864
MSCI isn’t actually lower risk, you’re just getting worse performance for equal downside. If American companies crash, are you safe holding msci? No. So you might as well just go with the snp500

>> No.55241990

>>55241912
>Appeal to authority
In a poor mans incompetent nlp attempt

>> No.55242008

>trusting global companies/governments

They are somehow more retarded than the US.

>> No.55242078
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55242078

>>55241990
So what's your fucking take then? you aren't saying nothing.

>>55241913
Well but with the SP500 you are trusting a handful of companies do well since FANGS move most of the market and who is to say this isn't a bubble.

How do we know the USA isn't going to underperform for 10 years or whatnot? How do we know which area of the world will beat the other for a fact? If we don't know, then shouldn't be have bags of each side? And the MSCI is already overexposed to the SP500 by 50% I think.

>> No.55242137

>>55241913
>>55242008
Let me give you a point regarding the SP500. If you had entered in February 2000 (1500 points), nine years later, in February 2009, the value of your investment would be at 50% (750). When did the MSCI have such drawndown? The SP500 is way more volatile. When you buy it you are hoping it goes higher again in the future, but if say you are 50 and you want to retire, and it crashes for 10 years, then that's not a great deal. Im 33 tho so I have time, that's why I was considering the extra risk of the SP500 for the extra gains, but who the fuck nows right.

>> No.55242521

>>55242078
I am telling you drop the frog asap. re-invent yourself, or your by now nearly 10 year long operation was all for nothing. Your kind already fucked up 2020, 2024, they are just going to wipe the floor with you. You are weak, you are lazy, you need to have your income cut, if not your throat and be replaced

>> No.55242583

>>55241912
SP500 is market cap weighted so the top 10 largest companies have about 25% the market share of the S&P, it’s not evenly divided by 500, so not as much diversification as you think

>>55242137
You wouldn’t want to be all in stocks when you retire, as you approach retirement you will gradually shift over to bond allocation and if the market ranks you should hopefully be able to live off of your bonds while avoiding the sale of equities until the market recovers. I would also overshoot your goal retirement amount to be safe, ie if you want 3 million to live off of, aim for 3.5-4 million to account for an abrupt market dip early on in retirement, OR live lean for the first few years and only withdraw 1-2% instead of 3-4%, or be prepared to go back to work for a bit. Lots of options

>> No.55244196

>>55241877
Where do you think you are?
>go back faggot

>> No.55245504
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55245504

>>55244196
who are you quoting?