For Bettor Or Worse? Point Spreads And Stock Prices.
Expectations of all market participants combine to set both stock prices and point spreads. An individual has to be extraordinarily confident (or oblivious) to think they can outsmart the crowd.
Expectations of all market participants combine to set both stock prices and point spreads. An individual has to be extraordinarily confident (or oblivious) to think they can outsmart the crowd.
Trimming an investment that has become “overgrown” can mean realizing gains and paying taxes. Not to be unexpected, this is part of being a successful, long-term investor.
DFA’s Emerging Markets Small Cap Fund (DEMSX) recently topped Bloomberg’s ‘Riskless Return Ranking’. We agree it’s a great fund, but for many reasons not captured in Bloomberg’s ranking.
Many investors wonder if index funds’ popularity has made markets less efficient, thus improving the environment for stock-picking and market timing. While index funds have grown, the majority of dollars remain invested in actively-managed strategies.
Why do so many investors attempt to beat the market each year when research clearly shows their odds of success are extremely low?