 Quote:
Originally Posted by LOL!
Whatever you do with your equities, the S&P500 index is a poor choice for 100% of your equities.
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Looking at our 401(k) investment history, I would agree. An S&P500 index is about 88% large-cap. Even a TSM index is about 72% large-cap. Is that little bit of difference that much better? It seems like large-cap stocks have not performed as well as mid-cap or small-cap stocks for quite some time.
Yeah, there was a great run for the S&P500 in the late 1990's, but an equally bad run in 2000-2002 for the index. It would seem that having less large-cap and more mid-cap and small-cap would be beneficial, but isn't that just chasing recent performance?
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