Small Cap Value Investing: Is It Still Worth It in 2025?

Karsten Jeske (Big Ern) and Paul Merriman engage in a lively debate about Small Cap Value Investing versus Broad Market Strategies.Should you tilt your portfolio toward small-cap value to capture a potential risk premium, or is sticking with broad-based funds like VTSAX the more reliable approach? With decades of financial expertise, Karsten and Paul offer opposing yet insightful perspectives to help you refine your long-term investment strategy.Watch and Subscribe on YouTubeIn This Episode, We Discuss: 1️⃣ Small Cap Value Premium: 📜 Historical data and its implications for modern portfolios. 2️⃣ VTSAX vs. Small Cap Value: ⚖️ Should investors embrace simplicity or pursue specialization? 3️⃣ Risk Premium Debate: 🎢 Does small-cap value justify the added risk in today’s market? 4️⃣ Sequence of Returns Risk: ⏳ The dangers of timing when withdrawing in early retirement. 5️⃣ Market Timing vs. Buy-and-Hold: 🎯 Are disciplined investors better off avoiding tactical shifts? 6️⃣ Portfolio Construction Tips: 🏗️ Allocating assets for growth, diversification, and resilience. 7️⃣ Nuances in Factor Investing: 🔬 Exploring quality screens, value premiums, and active management.🔗 Paul Merriman's Links: 🌐 Merriman Financial Education Foundation📚 We’re Talking Millions! 12 Simple Ways to Supercharge Your Retirement (And other Free Book Downloads)📊 Quilt Charts (Referenced in the Episode): 📺 YouTube Video Explaining the Two ChartsGraph 1: 4 US Asset Class Indexes & 4 Fund Combo Relative Return Ranking (1928-2023)Graph 2: Asset Classes & 4 Fund Combo (1928-2023) - Return Rank Frequency🔗 Karsten’s Links: 📘 Early Retirement Now Blog📈 Safe Withdrawal Rate Series📊 Recent Post on Small Cap Value🔗 David’s Links:💰 Free Money Course🍏 Forget About Money on Apple Podcasts🎧 Forget About Money on Spotify#retirement #investing #smallcap #paulmerriman #karstenjeske🎧 Listen & Subscribe:  Don’t miss future episodes where we explore the best investment strategies, financial independence, and wealth-building insights. Hit subscribe and tap the bell 🔔 to stay updated!📜 Disclaimer: This podcast is for entertainment and informational purposes only. It is not financial advice. Always consult a qualified financial advisor before making major financial decisions.