Because the best investment is in education.

I started my grand daughter investing at age 1 month. I told my son the quicker you get her a ss# the quicker I'll open a custodial account for her. He had her ss card within three weeks of birth.
Today she owns four funds. They are AMECX, ANCFX, CAIBX & SMCWX. According to Xray this portfolio bubbles at 5% cash, 15% bonds and 80% stocks. Within stocks it is about 65% domestic and 35% foreign with a growth tilt. From a style perspective it is about 70% large and 30% small/mid.

Here’s the problem that the CAPE highlights. Earnings in the past two decades have been far outpacing GDP; in the current decade, they’ve beaten growth in national income by 1.2 points (3.2% versus 2%). That’s a reversal of long-term trends. Over our entire 60 year period, GDP rose at 3.3% annually, and profits trailed by 1.3 points, advancing at just 2%. So the rationale that P/Es are modest is based on the assumption that today’s earnings aren’t unusually high at all, and should continue growing from here, on a trajectory that outstrips national income.It won’t happen. It’s true that total corporate profits follow GDP over the long term, though they fluctuate above and below that benchmark along the way. Right now, earnings constitute an unusually higher share of national income. That’s because record-low interest rates have restrained cost of borrowing for the past several years, and companies have managed to produce more cars, steel and semiconductors while shedding workers and holding raises to a minimum. Now, rates are rising and so it pay and employment, forces that will crimp profits...The huge gap between the official PE of 19 and the CAPE at 30 signals that unsustainably high profits are artificially depressing the former and that profits are bound to stagnate at best, and more likely decline. The retreat appears to have already started.