Re: How is our Portfolio?
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Don't we wanna be in funds that out perform the S&P? I think the Russell is probably a better index.
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This hinges on whether you believe that the powerful concept of reversion to the mean applies in this case. I do, so I expect the Russell 2k to do relatively poorly over the next few years. (I also believe, though, that in the super-long term, small caps will outperform as a matter of course.)
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So if we both believe Russell will outperform S&P why do you think reverting to the mean applies? Isn't the Russell behaving the way we both predict it will?
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