Rich_by_the_Bay
Moderator Emeritus
When I finally light my FIRE, I hope to have my investments sufficiently diversified as to type and style, that I can cherry pick whatever is "up" (or at least less "down") to feed my income buffer.
What categories of stock move independently of one another so that I can get there? Here is what I understand now (right or wrong):
Stocks v. Bonds
Small v. Large
Value v. Growth
Domestic v. Int'l
Emerging v other
Given that I cherish simplicity, how many buckets would you create in order to maximize the likelihood that at any point in time, there will probably be some bucket that is doing better than the pack and is ripe for the picking (ouch - talk about mixing metaphors!)?
Seems like a lot of potential for overlap, e.g. small cap can be growth or value, value can be large, mid or small cap, etc.
Or should I just to a total stock fund, a scoop of international and let the law of averages and "regression to the mean" do the rest?
What categories of stock move independently of one another so that I can get there? Here is what I understand now (right or wrong):
Stocks v. Bonds
Small v. Large
Value v. Growth
Domestic v. Int'l
Emerging v other
Given that I cherish simplicity, how many buckets would you create in order to maximize the likelihood that at any point in time, there will probably be some bucket that is doing better than the pack and is ripe for the picking (ouch - talk about mixing metaphors!)?
Seems like a lot of potential for overlap, e.g. small cap can be growth or value, value can be large, mid or small cap, etc.
Or should I just to a total stock fund, a scoop of international and let the law of averages and "regression to the mean" do the rest?