Need to include small cap value to portfolio?

[K82]

How many of you include small cap value funds in your portfolio? After reading this from Paul Merriman I plan to add it to mine.

https://paulmerriman.com/the-only-tw...ull-ever-need/

[bovie]

Don’t “need” to, but I definitely do have SV tilt.

You could just as easily find an article that persuades you not to. So be careful making decisions on a whim.

Think about your personal reasons for SV tilt, and whether you’d have the stomach to stick it out after a decade or longer of underperformance.

If there’s any chance you’d bail, then don’t tilt.

[Turf Doc]

As warren buffet/jim like to say, no called strikes in investing....

i also find merriman very persuading, but i think the problem with SCV tilt is:

1. assume the premium is still there
2. has to show up during your relevant investing timeframe
3. you can't bail

I would guess that because of emotions, more people are likely to underperform with a SCV strategy than are likely to outperform

[CordMcNally]

I have a small tilt, as well, but who knows how it’ll do going forward.

[Kennyt7]

just own the total stock mkt index fund; no other strategy is better

[xraygoggles]

Nope. Simplicity is the key to brilliance. I'm okay with Total US market index. Aka: Vti & Chill.

[VentAlarm]

I think small cap value likely will have outsized returns over the next 40 years, but I’m not willing to bet 10% of my portfolio on my ability to stay the course. I’m just total us and total international stock market because I know I can’t back out/time that.