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Can You Really Beat an Index Fund?By
Wednesday, June 21, 2006
When it comes to investing, there's a heated debate between two groups: The first group believes the stock market is random. There are no patterns. Price movements are as predictable as a roulette wheel. There's no point in trying to beat the market, because it can't be done except with luck. If you can't beat the market, join it, they say. Just buy a diversified basket of stocks and forget about them for a generation. These guys tell you to buy index funds... instruments that blindly follow indices like the S&P 500. This argument sits much better with newsletter publishers, stockbrokers, the mutual fund industry, and your financial advisor. It gives clients a reason to use these services, which of course, will make you fabulously wealthy. True Wealth readers can attest to how well the formula works. The portfolio has beaten the market every year since inception... Besides, we own every decent book on investing and trading written in the last 100 years. The evidence is huge. Think about it. The market is the sum of millions of human decisions... and humans make mistakes constantly. This will never change. Stick with DailyWealth, and we’ll show you how. Plenty more on this subject to follow... Tom Dyson Market NotesTHE “LEFT FOR DEAD” BARGAINS COME TO LIFE Question: With gold, emerging markets, commodities, and housing all getting crushed, how could you possibly have made money in stocks during the past month? Answer: By owning stocks everyone hates. By owning telecoms. The past year in the Telecom HOLDRs Trust: |
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