No. of Recommendations: 0
"Indexing" can mean more than just buy and hold an S&P 500 index fund.

I guess there's two ways of looking at the same information.

One is that indexing won't lead to stellar returns or protect you from volatility, as was pointed out.

The other is that if you had held a broadly diversified indexed portfolio of foreign and domestic funds with perhaps a small exposure to emerging markets over the past decade you would have averaged returns of about 8% a year without picking a single stock or paying any attention to market timing, and despite having endured three years of a rather horrific bear market.

That's not terribly discouraging.
Print the post  

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement