Row 37400

Row ID: 37400 | Dataset Entry | Axioma AXP Content Repository

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This page contains data entry 37400 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

>how to be positioned going forward

Stop trying to pick winners and losers. Just buy and hold a total market index fund like VTSAX (VTI) and focus on improving your income and your savings rate to add fuel to that portfolio. Increasing your earning power and your savings rate will have far more effect on the success of your portfolio.

The value premium, if it ever truly existed, disappeared after Fama and French published their paper on it. When all the active fund managers read that there was this theoretical value premium and then chased it, the price of value increased in response to that demand and the premium vanished like a mirage in the desert.

Folks like Paul Merriman recruit a fanatical following by preaching about small-cap value, but as Rick Ferri and others point out, you can't invest in historical returns without a time machine. The reality is that *no one* can predict whether growth or value will lead over any given period of time. That is why the sensible strategy is a total market index fund, so that you collect your share of the returns from *both* growth and value, and can focus on things that you actually have control over, like your earning power and savings rate.

FieldValue
text >how to be positioned going forward Stop trying to pick winners and losers. Just buy and hold a total market index fund like VTSAX (VTI) and focus on improving your income and your savings rate to add fuel to that portfolio. Increasing your earning power and your savings rate will have far more effect on the success of your portfolio. The value premium, if it ever truly existed, disappeared after Fama and French published their paper on it. When all the active fund managers read that there was…
label r/investing
dataType comment
communityName r/investing
datetime 2024-05-21
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Raw Record

{
  "text": ">how to be positioned going forward\n\nStop trying to pick winners and losers. Just buy and hold a total market index fund like VTSAX (VTI) and focus on improving your income and your savings rate to add fuel to that portfolio. Increasing your earning power and your savings rate will have far more effect on the success of your portfolio.\n\nThe value premium, if it ever truly existed, disappeared after Fama and French published their paper on it. When all the active fund managers read that there was this theoretical value premium and then chased it, the price of value increased in response to that demand and the premium vanished like a mirage in the desert.\n\nFolks like Paul Merriman recruit a fanatical following by preaching about small-cap value, but as Rick Ferri and others point out, you can't invest in historical returns without a time machine. The reality is that *no one* can predict whether growth or value will lead over any given period of time. That is why the sensible strategy is a total market index fund, so that you collect your share of the returns from *both* growth and value, and can focus on things that you actually have control over, like your earning power and savings rate.",
  "label": "r/investing",
  "dataType": "comment",
  "communityName": "r/investing",
  "datetime": "2024-05-21",
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Entry Information