Backtesting the most popular investment strategies over the last two decades!

$Crypto ETFs(BK2595.US)$ I have a confession to make. Even after all the analyses and strategies I have created, I allocate most of my investments to the S&P500 while keeping some part of it for the moonshots. I have told the exact same thing to everyone who has asked me personally for investment advice.

But as explained in this fantastic article by Nick, the problem with most financial advice is that it’s biased heavily towards your experience. I started investing in 2017 and have experienced nothing but a bull market (albeit the brief Covid-19 dip). But consider the situation of someone who started investing in 2000 or in the peak of the 2007 bubble. In both cases, it would have taken more than 6-7 years just to break even on their investments. I can’t even imagine waiting more than half a decade just for my investment to grow to its initial value, given the current market conditions.

Given that there is no one size fits all approach in the stock market, in this week’s analysis, I am doing a deep-dive into the various types of investment strategies, the returns generated, and their limitations.