Joe 90;60526 wrote:Is there any reason why I shouldn’t put my entire SIPP fund in equities?
There is a school of thought that advocates 100% Stocks at all times.
Reinforcement of this view is sought from charts such as :-
http://www.multpl.com/s-p-500-historical-prices
However the chart vertical scale is logarithmic, and therefore downplays the size of the drawdowns.
1929 was life-changing for so many with 80%+ losses (a wiggle on chart), with for many loss of job, etc; and left them asking through the thirties, "how could I have been so stupid as to be so heavily committed to Stocks?".
Gov't Bond investors however saw capital appreciation and the continuation of income.
Appreciate you have other means of support and 1929 and the 30's may we hope be an outlier.
So a personal decision then between aspiration (nearly said "greed"), or a balanced portfolio.
If the investor has wealth, maybe the first aim could be to design a portfolio to preserve that wealth in real terms?