food and nutrition


Question: Will VTI and EFA ETFs continue to rise or will they go back down? I am thinking of buying more shares of VTI and EFA but I am worried the share price will go down. What is your opinion and experience with this?

Answer: Over what period of time? I agree with Mr. Buffett: in 30-40 years, stocks will beat everything else after inflation, hands down. Next week, next month, next year....over the next 3 years, I have no idea. Within relatively short periods of time (<5 years) and especially for diversified assets like VTI & EFA, it is impossible to say what will happen with any degree of certainty if you are going to "check" every day or every week. More generally, I own widely diversified low cost assets in my retirement and long term savings accounts, including VTI and EFA...although my current preference is for VT. I made relatively steady increases in equity exposure within those accounts between spring of 2008 and spring of 2009 including major purchases of VT. I stopped when my accounts reach their maximum equity exposure (75%) in April. I have neither purchased nor sold those assets in those account since.

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