SPY vs. RSP
Happy Spring Mr. Marty,
I have 2 accounts (retirement and trading). For the retirement I simply invest in the SPY, however I got stopped out with a 5% trailing stop-loss, since then have been in cash (BIL). Recently the tone in your videos conveys "tech" may be an underperformer which is a major component of SPY. Would you think RSP might be a better performer this year vs. the SPY? I am looking to eventually go back in with my retirement account but would like some direction for an ETF investment. I would simply like your opinion, and realize there are no guarantees! Thanks for all you do for us Mr. Marty 🙂
Happy Spring!
It seems logical that after many years of outperformance that we see a "reversion to the mean" trade in 2025. Don't get me wrong as I believe that "Magnificent Seven" Â will hold up. But, an outperformance by the RSP makes sense to me for this year.
Time frames are a critical component in our investing style. If we have 20-40 years then parking money and dollar cost averaging into the S&P 500 makes total sense.
We can see from the five year comparison chart the S&P 500 has been outperforming. However, the gap is starting to close.
Regards,
Marty