Throughout the last decade (or last 15 years, really), FAANG stocks (and QQQ) have consistently overperformed the market/index funds
True but you conveniently cut off the dot com crash, in which the NASDAQ QQQ crashed from 107 to 23 (79%) while the S&P500 only fell about 43%. In finance beware the selective “well chosen” example.
From the 2000 top that is a return of only about 5% per annum compound.
The dot-com crash was also preceded by an extremely obvious and unique bubble that has not been seen since—diversifying/rebalancing during a massive/obvious bubble doesn’t take that much special skill or awareness, and we’re more aware of bubble dynamics now than 2000.
True but you conveniently cut off the dot com crash, in which the NASDAQ QQQ crashed from 107 to 23 (79%) while the S&P500 only fell about 43%. In finance beware the selective “well chosen” example.
From the 2000 top that is a return of only about 5% per annum compound.
The dot-com crash was also preceded by an extremely obvious and unique bubble that has not been seen since—diversifying/rebalancing during a massive/obvious bubble doesn’t take that much special skill or awareness, and we’re more aware of bubble dynamics now than 2000.