Thank you for your input, Vineviz. Isn't tilting rear view mirror driving? "Based on past performance, we can tell that SCV outperforms over the long haul" is pretty much the factor model in a nutshell, no?vineviz wrote: ↑Tue May 04, 2021 2:04 pmA) That is dismissive.whereskyle wrote: ↑Tue May 04, 2021 1:53 pm Again, I'm not trying to be dismissive, but anyone thinking about starting a SCV tilt should know that if they started investing in scv in
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they would currently have less money than if they had just invested in a total market fund.
B) That's some next-level rearview mirror driving.
C) It's partly incorrect (anyone initiating a tilt before September 2003 or after August 2019 has come out ahead)
I think Jack's point in the tell-tale chart that the outperformance over long time periods of any particular asset class is typically due to extreme outperformance over very brief timespans that we cannot reliably predict either will recur or when it will recur is a pretty strong point.
Also, your 2003 and 2019 data seems to rely on a SCV fund that is different from the one under discussion before your contribution to the discussion. Another risk of tilting SCV is that u have to choose the right SCV fund to tilt to.