In this episode of “Real Personal Finance,” Meg Bartelt joins me as a co-host for the final time, and we dive into a common investing misconception: thinking the S&P 500 is all the diversification you need. Though it’s not a bad investment, investing in only the S&P might be doing more harm than good in the long run.
While the S&P 500, which tracks the 500 largest U.S. companies, has historically performed well, it represents about half of the global market. Relying solely on it means missing out on opportunities in international stocks, small-cap companies, and other asset classes that provide diverse growth potential and risk management benefits.
Plus, market cycles shift and past performance doesn’t guarantee future results. Investors often chase returns without considering broader market conditions. While tech stocks have driven recent gains, they also bring volatility. A more balanced strategy includes multiple asset classes to manage risk and capture growth.
Meanwhile, global markets, small-value stocks, and bonds have historically delivered strong returns under different market conditions. Meg and I discuss the “Lost Decade,” a period from 2000 to around 2009 when the S&P 500 struggled to generate returns while global markets continued to thrive.
If you're wondering how to tap into international investments, the good news is: it's easier than you think. ETFs provide a simple way to diversify and access a broader range of opportunities. Understanding these options can help you build a stronger, more resilient portfolio.
As we wrap up this episode, we’re also closing a special chapter—Meg’s time as co-host. What started as an open-ended invitation turned into an incredible run of insightful conversations, deep dives into investing, and plenty of laughs along the way. Meg has brought so much wisdom and curiosity to this podcast, and we’re endlessly grateful for everything she’s shared with us.
The good news is, this isn’t goodbye! If you want to stay connected with Meg, you can follow her journey, read her blog, and keep up with her latest work on her website. We’ll miss having her on the mic, but we know she’ll continue to bring valuable insights—just in a different form.
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Money can be confusing—but it doesn’t have to be. When you’re able to understand the complexities, you can make better decisions to improve your daily life. Are you ready to align your money with your ideal life? Connect with us at Stone Steps Financial or Flow Financial Planning.
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