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And therein lies a problem. Outside of the broad message,"diversify so that you don't miss the 'good' stocks", I'm not sure he's clear himself on what he's trying to say.
FWIW, the Bessembinder paper he cites compares individual stock performance with both value- (cap-) weighted and equal-weighted portfolios.
The lesson: The stock market doesn’t follow a predictable playbook. Even when it seems to follow a pattern, that pattern is subject to change without notice. Result: Efforts to outsmart the market often turn into exercises in frustration. In my view, though, this is actually a benefit: It means that you don’t need to spend much time, if any, trying to stay ahead of the market.
Generally, it's correct. If you do a bit more analysis you knew that the biggest high tech companies are the most dominated for years decades and why I been posting about QQQ as a good sub for some of your US LC and definitely instead of SC and international. SP500 get about 40% of the revenue from abroad and QQQ about 50%.
Investment legend Peter Lynch said it best: “I think if you spent over 13 minutes a year on economics, you’ve wasted over 10 minutes. I mean, it’s not helpful. Everybody wants to predict the future, and I’ve tried to call the 1-800 psychic hotlines. It hasn’t helped. The only thing I would look at is what’s happening right now.”
I have been saying it for years disregard the economy, unemployment, hundreds of articles and "experts" I only look at what’s happening right now by using charts and trend. The price is your best indicator real time, it is what sellers and buyers agreed on and definitely don't invest based on predictions since many are wrong and/or months/years away.
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jclements does some interesting and reliable curation, I find
I read halfway through it and figured it would start to make an argument for say RSP ... but then it veered more back toward 'go w the flow'
FWIW, the Bessembinder paper he cites compares individual stock performance with both value- (cap-) weighted and equal-weighted portfolios.
Stay Safe, Derf
yearsdecades and why I been posting about QQQ as a good sub for some of your US LC and definitely instead of SC and international.SP500 get about 40% of the revenue from abroad and QQQ about 50%. I have been saying it for years disregard the economy, unemployment, hundreds of articles and "experts" I only look at what’s happening right now by using charts and trend. The price is your best indicator real time, it is what sellers and buyers agreed on and definitely don't invest based on predictions since many are wrong and/or months/years away.