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Strategies & Market Trends : The Art of Investing
PICK 45.48+0.6%4:00 PM EST

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To: benwood who wrote (1630)3/27/2021 6:26:34 PM
From: Lou Weed  Read Replies (1) of 10603
 
Hindsight is 20/20. For the average investor (I'm talking the 401k everyday Joe & Jane) buying an S&P500 index fund and holding it for 35 - 40 years until retirement will perform better than most fund managers. Why pay a fund a mgmt fee when the odds are stacked against it to outperform the general market?!? It would be disastrous for every 401k owner to try to time the market, ergo "buy-and-hold" for most folks is the better course in the long run. Plus most 401ks have a restriction on number of moves per year to cut down on that possibility.....save you from yourself, as it were.

Obviously for the more active and savvy Joe/Jane you can increase your odds with a good strategy but folks like this are definitely the minority. I've often wondered just what percentage of this "savvy" minority do actually beat the market in the long run. Things that make you go hmmmm......
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