Wed Dec 18 2024, by Tyler Gardner
An Investment Strategy That Would Have Doubled Your Money
Here is an investment strategy that would have doubled your money during one of the worst decades in US stock market history. I'm Tyler, a former financial advisor and portfolio manager, and now I make financial content for free so that you don't have to pay for it.
Understanding the Lost Decade
Number one, if you had been fully invested in domestic stocks from 2000 to 2010, during the lost decade in the wake of the dot-com bubble, you would have most likely lost money over the course of the 10 years.
Diversification Across Asset Classes
Number two, if, however, you had properly diversified across asset classes and had:
- 33% in fixed income,
- 27% in domestic stock,
- 17% in developed international stock,
- 14% in emerging market stock,
- 12% in real estate through real estate investment trusts,
you would have just about doubled your money.
Looking Ahead
Number three, just remember that more often than not, we're planning to fight our last battle. So just because it worked during the lost decade doesn't mean it will work during the next decade.
If any of this is helpful, like and follow, and I'll keep trying to get you one step closer to where you need to be.
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