Why do people micromanage their investments if S&P500 beats most managed funds in the long term?

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I just don’t understand why someone would risk their money on marginally better gains over the S&P500, when the odds are stacked against you. Also I’m not talking about someone else managing your money, I’m talking about you yourself going the distance by learning about stocks, picking the stocks you think are winners and then trying to capitalize on them.

In: Economics

4 Answers

Anonymous 0 Comments

Not necessarily true. Cycles happen. Irrational Exuberance, by Robert Shiller, is an excellent book on it. Warning: it’s dry reading, and it has technical investing stuff in it.

Also, S&P500 isn’t an investment. It is a snapshot of 500 companies. You still have to invest in those companies. Companies enter and leave that list, and companies on that list don’t always do well.

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