The holy grail of any aspiring investor is to beat the stock market. This is what professional investors get paid big money to do.
And historically, it didn’t matter if they underperformed the major indices by a little bit, since there was really no other way of gaining exposure to the stock market.
That’s simply not the case today. The emergence of index funds and ETFs (Exchange Traded Funds) has made it cheap and easy to gain exposure to the stock market with the guarantee of earning market returns.
But its human nature to want more. So professional investors continue to seek out above-average returns, and we continue to pay them big money to do so. But are we getting our money’s worth?
A recent study showed that 82% of large-cap funds underperformed the S&P 500 Index over a ten-year period. So if the pros can’t beat the market, what hope do we have?
Let’s find out…