Diversification: Finally doing its job.

[Al18]

I picked up some FHASX today, Fidelity Freedom Blend 2035 FHASX - Fidelity Freedom ® Blend 2035 Fund | Fidelity Investments

39% US Equity, 33% Non-US Equity and 33% (nearly all US and 4.38% Non-US). 0.48% expenses. Previous dividends were paid on 5/10 and 5/12 - so time your purchase accordingly.

Share class net assets page shows 2024 at 203 M$, while 2025 is 630 M$.

 

[Markola]

I picked up some FHASX today, Fidelity Freedom Blend 2035 FHASX - Fidelity Freedom ® Blend 2035 Fund | Fidelity Investments

39% US Equity, 33% Non-US Equity and 33% (nearly all US and 4.38% Non-US). 0.48% expenses. Previous dividends were paid on 5/10 and 5/12 - so time your purchase accordingly.

Share class net assets page shows 2024 at 203 M$, while 2025 is 630 M$.

It looks like you bought a slice of the global economy, alright! I’ve always liked the thought of owning global assets that never sleep, because people around the world are going to work every day to try to increase shareholder value, and all I have to do to do to participate is some clicks on the computer.

 

[FD1000]

If I understand you correctly, you invested in stocks while you were working, actively rotating through different S&P 500 segments. It sounds like it worked out for you, so congrats.

Then you went mostly specialized bond open ended funds when you retired in 2018.

I’m curious how 2022 fared for you? I was 50% bond index funds and, I have to say, it sucked and it set me back. As Stormy Kramer mentioned, one can lose their backside on them, too.

No, I don't use single stocks and bonds. I have used 5 funds from 2000 to 2017, then only 2-3 funds since 2017.
Yes, since 2017, one year prior to 2018=retirement, I'm mostly in bond OEFs. In 2022 I made 9.7%. I started to do timing and go in/out of the market too about 10 years ago. I developed my system for years. There are no fast tradings, no making money fast. The idea is to own unique bond funds with slow uptrends and be very flexible. Be out when markets are very risky, but be in most times.
I have been out for weeks now. How/what I do: see my bio.

In the past, most of the funds I owned were HY Munis and Multisector funds. PIMIX opened my eyes, see 2010-18 performance.

Here is an example from 2024. I never invested directly in CLO, but CLOZ made over 11%.

 

[William38]

After YEARS of feeling stupid for not owning anything but the S&P 500 index fund, things are changing. In addition to domestic stocks, we own significant index fund allocations of domestic bonds, international stocks and bonds, alternatives, and home equity. About the only major asset classes I don’t own are gold and cash, though I’m rethinking the cash one lately.

So far in 2025, my stubborn Boglehead tendencies are finally paying off a little.

After swan diving since the 2022 Fed rate increases intended to mop up the 2020 fire hose of Fed money printing, the Vanguard Total US Bond Market Fund (VBTLX) is up 1.9% YTD. Maybe the fall 2024 Fed rate cuts are finally kicking in.

More remarkably, after decades of relative lethargy, international stocks have a pulse. Just over two months into this year, Vanguard Total International Stock Index Fund (VXUS) is up 7.53%. Domestic stocks are going the other direction.

Of course, things can and will change throughout 2025, but it’s also possible these are emergent trends. Some active investors will say, “Meh, when a trend emerges I’ll pile in,” forgetting that the biggest moves in any market are dependent on already being invested for just a day or two per year when things move big. That knowledge is why diversified investors endure years of mediocrity in big portions of our portfolios: We know change happens fast and we want to be prepared for anything.

Like spring after a long winter, it’s nice to see long dead grass turn green.

That’s a great way to put it—like spring after a long winter. I’ve stuck with a globally diversified, mostly passive portfolio too, and it’s been a real lesson in patience. When parts of your portfolio finally start moving after years of underperformance, it’s a reminder of why we spread things out in the first place. It may not always feel smart in the moment, but staying invested across asset classes really does give you a fighting chance when the tides turn.

 

[Markola]

No, I don't use single stocks and bonds. I have used 5 funds from 2000 to 2017, then only 2-3 funds since 2017.
Yes, since 2017, one year prior to 2018=retirement, I'm mostly in bond OEFs. In 2022 I made 9.7%. I started to do timing and go in/out of the market too about 10 years ago. I developed my system for years. There are no fast tradings, no making money fast. The idea is to own unique bond funds with slow uptrends and be very flexible. Be out when markets are very risky, but be in most times.
I have been out for weeks now. How/what I do: see my bio.

In the past, most of the funds I owned were HY Munis and Multisector funds. PIMIX opened my eyes, see 2010-18 performance.
View attachment 55296

Here is an example from 2024. I never invested directly in CLO, but CLOZ made over 11%.

View attachment 55297

I read your interesting profile. Congrats on your unconventional investing success.