So, XO, a friend of mine last week put his entire portfolio in TIAA-CREF (around $350K) in Growth stocks as he is convinced speculative stocks, contrary to the "crowd", will go bananas. Sounds bizarre to me. Your thoughts?
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My thoughts are that is is indeed right. Growth stocks have the greatest potential to surge really high when the fickle finger of fate eventually gives them their turn. One does indeed make money by buying low and selling high, and at the absolute low of a class of stocks, no one wants them. Like Chrysler in the 80's, after the government bail-out.
Being 65, I am inclined to wait a while longer in the RE fund, because I see Growth stocks being flat or in a downward trend at least until the next administration takes over. I have in the past, earned around 29% in the Growth Fund. But every category is cyclical.
Right now, the cycle that show the best yields are Emerging Markets, Natural Resources, Latin America, and specialized Real Estate, like TIAA Real Estate. Some US largecaps are also on the rise.