So I’m in my mid 20s, and for someone who has time and is willing to take on short term risk for long term gains, wouldn’t the Nasdaq be a better index than the S&P 500? This is my strategy and it appears to be simple and right in front of everyone but no one suggests it.
Over the past 15 years the nasdaq has had a compounded annual growth of return of 16% vs the s&p 8%, yet the most common thing you hear is to index into the broader market
or just buy the s&p. It seems the more obvious choice would be the Nasdaq. I get the nasdaq is mostly tech and less diversified than the s&p, and that doesn’t mean you can’t buy both, but it seems it makes more sense in early years to buy more of the nadaq and less of the s&p
Am I missing something?
Over the past 15 years the nasdaq has had a compounded annual growth of return of 16% vs the s&p 8%, yet the most common thing you hear is to index into the broader market
or just buy the s&p. It seems the more obvious choice would be the Nasdaq. I get the nasdaq is mostly tech and less diversified than the s&p, and that doesn’t mean you can’t buy both, but it seems it makes more sense in early years to buy more of the nadaq and less of the s&p
Am I missing something?