Are You Lucky Enough to be the 10%?
There is an interesting discussion recently.
90% of Retail investors do not beat $S&P 500(.SPX)$ in last 15 years.
Actually, 88.99% of large-cap US funds have underperformed S&P500 index over ten years.
A netizen said:
My 401k and ROTH IRA are doing great. In index funds.
The $20-30k i used for personal investment/options was all pulled out with a valuation of $5,000.
Just stick with indexes and you'll be a millionaire.
Anybody lucky enough to be the 10%?
Of course, there is someone who is lucky to be the 10%.
He shared secret:
Long on $Apple(AAPL)$ at $15/share and $Tesla Motors(TSLA)$ at $22/share.
How's your portfolio going on?
Are you the lucky 10%?
If so, share your secrets!
If not, will you turn to spy or try harder to become a professional investor?
Leave your comments and also post to win tiger coins~
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Yes, it's often cited that a significant majority of retail investors underperform compared to the S&P 500 over extended periods. This statistic highlights the challenges faced by individual investors in consistently achieving returns that exceed those of a broad, diversified index like the S&P 500. I think the factors contributing to this underperformance include:
1. Market Timing:
Many retail investors attempt to time the market, which is difficult and often results in buying high and selling low.
2. Emotional Decision-Making:
Retail investors may make investment decisions based on fear or greed rather than a disciplined strategy, leading to suboptimal results.
3. Lack of Diversification:
Individual investors might concentrate their investments in a few stocks or sectors, which increases risk compared to a diversified index.
4. Higher Costs:
Active trading and management fees can erode returns over time.
5. Inconsistent Strategy:
Long-term investing strategies, like those used by index funds, often outperform short-term trading strategies favored by some retail investors.
This underperformance suggests that passive investment strategies, such as investing in low-cost index funds that track the S&P 500 $S&P 500(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ , might be a more reliable way for many investors to achieve competitive returns.
How do you think?
@Tiger_comments @TigerStars @CaptainTiger @MillionaireTiger @TigerGPT
lol... consider myself lucky when my portfolio in green for all stocks. some of my stocks still a little red while most have turned slightly green. and a few are doing quite green. praying not green pastures with flowers [Bless]
am trying to diversify into others industries and sectors to have a more balanced portfolio... needs more [USD]
where is my money tree [Doubt]
@Universe宇宙 @koolgal @Shyon @Aqa @LMSunshine @GoodLife99 @HelenJanet @rL @SPACE ROCKET @TigerGPT
How's your portfolio going on?
Are you the lucky 10%?
If so, share your secrets!
If not, will you turn to spy or try harder to become a professional investor?
Leave your comments and also post to win tiger coins~
Hop on my SPACE ROCKET to infinity and beyond!! 🔥🚀