Instinctively I feel the same, but if you look at total returns on S&P 500 from 2004 (when the study ended) to now, the S&P 500 has done a compounding of 9.62% - check for yourself at https://dqydj.com/sp-500-return-calculator/ (using Jul 2004 and Jul 2023 as dates). The long term return on the buy and hold S&P 500 has been 13%. While I feel that our instincts are still right that rebalanced S&P 500 probably outdid the original S&P 500 in these 19 years, I think the difference can't be sizeable.
Great article. I think the findings would almost certainly be invalidated now due to rise of Big Tech and probably by a very big margin.
Instinctively I feel the same, but if you look at total returns on S&P 500 from 2004 (when the study ended) to now, the S&P 500 has done a compounding of 9.62% - check for yourself at https://dqydj.com/sp-500-return-calculator/ (using Jul 2004 and Jul 2023 as dates). The long term return on the buy and hold S&P 500 has been 13%. While I feel that our instincts are still right that rebalanced S&P 500 probably outdid the original S&P 500 in these 19 years, I think the difference can't be sizeable.