What to invest in

Based on the most helpful WSO content, your approach aligns with many common investment strategies discussed in the forums. Here's a breakdown of insights:

1. Core Portfolio Allocation:

   • A mix of VOO (S&P 500 ETF) and QQQ (Nasdaq-100 ETF) is a solid foundation. VOO provides broad market exposure with a focus on large-cap U.S. equities, while QQQ leans towards tech-heavy growth stocks.
   • Allocating 60-85% of your portfolio to these ETFs, with a heavier weight on VOO, is a balanced strategy for long-term growth and diversification.

2. Riskier Assets:

   • Allocating the remaining portion to riskier assets like individual stocks or crypto can provide upside potential. However, this should be done with caution and only with money you can afford to lose.
   • As mentioned in WSO threads, crypto (e.g., Bitcoin, Ethereum) can offer high returns but comes with significant volatility. If you're emotionally affected by daily price swings, it might be better to avoid or limit exposure.

3. Market Outperformance:

   • The idea that "the market outperforms everything 99% of the time" is echoed in WSO discussions. Passive investing in broad market ETFs like VOO and QQQ often beats active stock picking over the long term due to lower fees and consistent market exposure.

4. Diversification and Defensive Assets:

   • Consider adding some defensive or non-correlated assets to your portfolio. WSO threads suggest options like gold, commodities, or even bonds for stability during market downturns.
   • For example, Dalio's All Weather Portfolio includes a mix of equities, bonds, gold, and commodities to balance risk across economic environments.

5. Age and Risk Tolerance:

   • Tailor your allocation based on your age and risk tolerance. Younger investors with a longer time horizon can afford to be more aggressive (e.g., 90% stocks, 10% bonds), while older investors might prefer a more balanced approach.

Ultimately, your strategy of focusing on VOO and QQQ with a smaller allocation to riskier assets is a sound starting point. Just ensure you periodically review and rebalance your portfolio to align with your financial goals and market conditions.

Sources: Dalio's all weather Portfolio - Value Investing version, A Decade Into IB: Teetering on the Edge of Cataclysm?, How Would You Invest $1 Million Today?, https://www.wallstreetoasis.com/forum/investing/be-greedy-when-others-are-fearful-are-we-at-the-bottom?customgpt=1, https://www.wallstreetoasis.com/forum/hedge-fund/settling-the-debate-over-tqqq-as-a-long-term-investment?customgpt=1