You Can’t Pick It

Investment wisdom is often seen as knowing which stocks or asset classes will do best in the period ahead. But think about that for a moment. If someone really knew the answer to that question, why would they share their insights with you?

In this blog we look at how picking stocks and timing the market is a mug’s game and why the old rules of diversification and discipline make sense.

Study Highlights Few Beat Market For many fund managers, the important job is not so much beating the market but beating their competition. A new paper in the Financial Analysts Journal provides solid evidence that few, if any, managers beat the market over the long term. Indeed the big risk is not underperforming one’s peers.

Can you See a Pattern? Many people think they can discern patterns in market returns. If this year property was the best bet, next year it will be shares. But if you chart the returns of various asset classes over the years, it’s very hard to see any system at work. And that’s why diversification is your best friend.


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