To start with, let’s recognize the very rich returns of the “headline” stock indexes over the past 3 years (5/8/2015 – 5/7/2018). I am going to present 4 distinct groups of market segments from among the more than 100 I follow every day. For young investors with decades until retirement, the high-reward/high-risk tradeoff that the broad stock market indexes offer is something they can accept because they have TIME. They either suffer from addiction to past returns they only grabbed a small piece of, or they are in full-fledged FOMO mode. It is a dangerous self-fulfilling prophesy which has made Robo-advisors and “60/40” investor types strong returns the past 3 years.
Source: Forbes May 14, 2018 15:56 UTC