noob investor wrote:
agip wrote:
ja, agreed with Igy that you won't get much meaningful diversification by going 80/20 big cap/mid cap. The funds will move largely in sync with each other.
So should I just do 100% large cap index?
I read total stock index was roughly 80/20 large/small. Her fund doesn't offer a small cap index so I did mid cap index.
mid cap is an odd sector. One that i have rarely been enamored with.
My advice if confining yourself to the three sectors would be something along the lines of 70%-80% large cap and 20% - 30% small cap.
Timing can be effective with this mix, and small cap does better relatively on the early years of a market cycle and large cap better in the mature stage .
these days i have gravitated more to the Nasdaq and Tech sector in lieu of large cap , but we do have holdings in all of these.
About a week ago i said on here that small cap looked particularly attractive at that level, and it has started spiking up nicely since then, fwiw.