Goliath has been winning all year, but David’s finally fought his way out of the corner and he’s punching back.
To date, large-caps (S&P 500) are up 22%, while smalls (S&P 600 and mids (S&P 400) are “only” up 14%.
But the last 6 weeks are a great lesson in why we don’t JUST buy the “hot thing.”
Since late October, small-caps are up 21%, mids are up 18% and large-caps are “only” up 11%.
If you looked behind the curtain of our Financial Zen Portfolios this year, you would have seen our rebalancing system selling Goliath and buying more David.
In other words, we took the gains off the Goliath table before we lost em and put that money back into David before it popped.
And now you understand the magic of asset allocation and rebalancing.
Beeteedubs, what we do isn’t “special”. All the roboadvisors work the same way. (What makes us special is having more than an 800 number to call.)
So if you’re not lucky enough to have us helping you, help yourself by using a Wealthfront, Betterment or even Schwab Intelligent Portfolios.
(Oh and all of us – Financial Zen, Wealthfront, Betterment, etc – only charge 0.25% per year. If you’re paying more you’re wasting your money. SNS)
