I am linking to a couple articles for you to read. The articles will show you how poorly the financial industry/experts are at beating the market. I wish these types of article/stories made the major news cycle every year. With a little bit of knowledge, you will easily be able to beat the market, earn great returns, and not pay fees to the financial industry for their sub par performance.
Excerpt – “Give a monkey enough darts and they’ll beat the market. So says a draft article by Research Affiliateshighlighting the simulated results of 100 monkeys throwing darts at the stock pages in a newspaper. The average monkey outperformed the index by an average of 1.7 percent per year since 1964. That’s a lot of bananas!”
84% of large-cap funds generating lower returns than the S&P 500 in the latest five-year period
Excerpt – “That hot-shot mutual fund manager you’re betting on to make you rich might be generating returns that fall far short of the benchmark
stock index the fund tracks. The longer-term outlook is just as gloomy, with 84% of large-cap funds generating lower returns than the S&P 500 in the latest five-year period and 82% falling shy in the past 10 years, the study found.”
Wait, a monkey throwing darts to pick stocks outperformed the S&P 500 by 1.7% and beat 84% of the “experts” since 1964? Yep. Just buy an S&P 500 index fund and you’ll beat 84% of the “experts”. There is no way I’m paying the experts 1% of my portfolio to not beat a monkey. I’m also not going to listen to any of their picks either.
If anyone tells you they can predict how the stock market is going to do in the future, run away, go buy a monkey, darts, and the stock pages for the monkey to throw darts at. You will pay way less in fees and beat 84% of all the experts charging you to earn you less money.
Thanks for stopping by and hope the post has been helpful.