Actively managed mutual funds are mostly a scam that underperform the market, yes.Speaker to Animals wrote:Okeefenokee wrote:Not over time, they don't.Speaker to Animals wrote:LOL
They do it all the time.
But over the very long run, Fama was right: Almost no one who is operating honestly can maintain a persistent information edge over the millions of other smart investors who comprise “the market.”
Some research I’ve recently come upon clinches it: Fewer than 1% of mutual fund managers persistently beat the market based on superior market-timing or stock-picking skills. That’s down dramatically since the mid-1990s, suggesting either a decline in managers’ skills or a great leveling of performance because of technology, high-frequency trading, what have you.
LOL
If you limit it to mutual funds, okay. But mutual funds are a fucking scam. They are not meant to earn money for the investor. They are meant to generate lots of transaction fees over time for the managing firm. Avoid.
Actual traders beat the market all the time. Long term. No problem.
Passively managed index funds, however, are awesome.
Let's see some examples of traders who persistently beat the market.