UnThreaded | Threaded | Whole Thread (18) | Ignore Thread Prev | Next
Author: joelxwil Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77123  
Subject: Re: Index fund investing versus stock selection Date: 10/6/2007 3:32 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
Many funds beat their index over such a short period. Very few beat their index every year over a 5 year period and almost zero funds beat their index every year (or even on average) over a 10 year period.

That is why you re-evaluate your funds regularly. If one begins to fall behind, dump it and replace it.

But there is no reason to use the S&P 500 as a benchmark anyway. Other domestic indices beat it from time to time, and recently nothing has beaten the emerging markets.

Best to go where the action is, so long as you are willing to get out if the fund begins to under perform.

I am trading a mechanical system which moves in and out of some ETFs, mostly foreign and domestic indices. It has trounced the S&P, even without market timing, which I also employ.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (18) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.