Should young investors stick with index funds or seek higher returns elsewhere?
I've been thinking about whether investing in index funds is really the best move for young people right now, especially with inflation eating away at purchasing power. A friend of mine put everything in a total market ETF and just watches it grow, but another friend diversifies into real estate and crypto, claiming higher returns. Given that the S&P 500 has averaged around 10% annually but had flat years like 2022, wouldn't a more active strategy—including international stocks or even commodities—be worth considering for someone with a 30-year horizon? I'm not sure if passive investing is too complacent or if trying to beat the market is just overconfident noise.