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by pedrocr
2685 days ago
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I buy and hold index funds, so by definition I obtain the market average over time. All these supposed schemes to beat market returns never explain who are the suckers on the other side of those bets that are getting lower than average returns so you can have higher than average ones. And in aggregate those advantages are impossible as can be trivially demonstrated with just some basic math: https://web.stanford.edu/~wfsharpe/art/active/active.htm If you can actually derive meaningful excess returns from market timing that's great for you. I suggest a career in finance, you'll be obscenely rich if you can do it consistently, and probably still very rich if you can at least convince other people of your theories. To suggest that normal retail investors who don't specialize in this can obtain those advantages as well is fantasy. |
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But whatever works for you man.