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Still think it's easy?
Many called 2022 a "stock picker's market" yet the majority of large-cap equity funds still underperformed the S&P 500.
In fact, in the last 12 years, there have only been 3 years when they managed to outperform.
For multiple decades now, active management institutions have been predicting the comeuppance of market index funds. Every bear market, the siren call gets louder.
It's an index bubble ... market structure is going to break down ... you're fully exposed to the downside .... active funds will protect you from the worst of the bear market downside ... price discovery will collapse because everybody will index ...
We're still waiting to receive our shellacking over and above the shellacking you get from owning active funds during a bear market. It's been decades, but apparently it's coming ...
@jazziyoung Active management is supposed to shine in years like 2022 as well. Although they did do better than recent years.
@investmenttalk The game is never easy ...
As the average holding period continues to decline, it’s entirely possible more of those orange lines are incoming.
Not to say shorter-term trading strategies can’t outperform, but the percentage of people that can do it well seems pretty low anymore.
@joryko You have to be either Citadel or Renaissance, otherwise forget it.
I think it’s important not too look at one year, but longer years in totality.
I don’t think it’s see, but it definitely doable.
@eugeneng great point!
I think without concentration as your strategy as a fund it's very hard.
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