CCP isn't meant to be a better performing investment strategy than, say 100% US equities. It's meant to be a low-MER investment strategy to keep people stay invested, even amidst the dips. It's to give investors a sense of security with diversification.retireat50 wrote: ↑ People on this thread are bizarre, someone even said I should not post if I am not an ardent supporter. Can this thread not have both positive and negative comments?
Markets are once again surging, S&P up nearly 1%, QQQ up 1.5% and XAW is flat lol. You can't make this stuff up. To address certain comments
1) Why not just go 100% SPY. I would face a massive tax liability so still have some of this stuff as legacy positions. I am slowly getting rid of this junk when I have some tax losses to offset but will take awhile
2) Someone mentioned they looked at some passive index funds and they had international and bond holdings. Huh??? I am talking about the equity side only. I have no issue with CCP bond holdings and infact have VSB, ZAG,etc on the fixed income side
3) Someone said I was cherry picking. Cherry picking SPY??? When someone says stock market, the Average Joe and Jane think of THE S&P 500. It is the gold standard in terms of an index the world throughout. I would agree with their point if I picked TSLA, Amazon, etc
4) Someone mentioned that this is lower risk. No, XAW/VCN dropped more than SPY during the March lows
Again, I go back to my question which remains unanswered. Under what macro environments will CCP outperform a 100% SPY (S&P 500) holding on the equity side? If the answer is none (which I assume is the case given noone has answered me) then what is the point of anyone following CCP? You get to share when it underperforms but have no prospect of outperformance. You must be compensated for holding equities given there is an assumption of equity risk premium and you must maximize that during the good times. CCP holders are not
Think of it like losing weight. Which method is the best? Calories in, calories out? Keto? Intermittent fasting? It doesn't matter. Just do the one that works best for you and keeps you on the path as long as possible. That's essentially what CCP is. It's just another investment strategy that is a lower cost alternative to the typical mutual funds that have been around forever.
It's bizarre that this is triggering you so much. I started doing CCP as well, then have switched to higher US equities myself, but I certainly don't have the same vitriol for CCP as you do.
