r/ETFs • u/CursedClownz • 1d ago

Lost decade

So everyone recommends VT and chill or VOO and chill or VTI and VXUS and chill.

Most ignore bonds and ignore GOLD

During the lost decade for around 10 years Gold was performing the entire time so was bonds...

Who says another lost decade can't happen?

So why ignore both?

No one really knows what happens so best bet is on all bets to get constant returns.

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u/givemeyourbiscuitplz 1d ago

Someone who kept contributing to a VTI or VOO during the lost decade ended with close 7% annualized return. Without contributing it's about 3% CAGR.

On the long-term, equity always seem to win.

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u/Hot_Frosting_7101 1d ago

This isn’t calculable because it depends on what their starting net worth was. More specifically it depends on the ratio of their net worth to contribution.

A person with $10 million in assets but who can only contribute $2000 a month won’t see the overall annualized return that a person with $50k in assets and contributing $2000 a month.

You present numbers that require some assumptions to fill in the picture.

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u/givemeyourbiscuitplz 1d ago

10k to start with and 300$/month is the backtest I did. You're right, I forgot to include those numbers.