Row 12946

Row ID: 12946 | Dataset Entry | Axioma AXP Content Repository

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This page contains data entry 12946 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

Why wouldn’t you reinvest dividends? It’s normal that a great portion of international stocks returns are distributed as dividends. You should look at compound total return and not just at price increase or dividend yield.

On the other, it’s normal that some asset classes underperform others even during long periods of time. From 1966 until 1982 the S&P 500 has negative real (i.e. adjusted for inflation) returns. From 2000 until 2009 it also lost money.

During those periods, international diversification and small cap value performed better.

That’s why you diversify, it’s a better strategy in the long run. Obviously it’ll hurt, because you’ll always hold something that’s performing not so well. However if everything you held was doing great at the same time, that would mean that you’re not really diversifying.

Finally, it’s impossible to forecast when is something going to do well. So the best strategy is to diversify. You’ll never have the best performing portfolio of the year, but you’ll be better over the long run.

FieldValue
text Why wouldn’t you reinvest dividends? It’s normal that a great portion of international stocks returns are distributed as dividends. You should look at compound total return and not just at price increase or dividend yield. On the other, it’s normal that some asset classes underperform others even during long periods of time. From 1966 until 1982 the S&P 500 has negative real (i.e. adjusted for inflation) returns. From 2000 until 2009 it also lost money. During those periods, international dive…
label r/investing
dataType comment
communityName r/investing
datetime 2024-05-20
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Raw Record

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  "text": "Why wouldn’t you reinvest dividends? It’s normal that a great portion of international stocks returns are distributed as dividends. You should look at compound total return and not just at price increase or dividend yield.\n\nOn the other, it’s normal that some asset classes underperform others even during long periods of time. From 1966 until 1982 the S&P 500 has negative real (i.e. adjusted for inflation) returns. From 2000 until 2009 it also lost money.\n\nDuring those periods, international diversification and small cap value performed better.\n\nThat’s why you diversify, it’s a better strategy in the long run. Obviously it’ll hurt, because you’ll always hold something that’s performing not so well. However if everything you held was doing great at the same time, that would mean that you’re not really diversifying.\n\nFinally, it’s impossible to forecast when is something going to do well. So the best strategy is to diversify. You’ll never have the best performing portfolio of the year, but you’ll be better over the long run.",
  "label": "r/investing",
  "dataType": "comment",
  "communityName": "r/investing",
  "datetime": "2024-05-20",
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Entry Information