Don't Try to Outguess the Market (Key Investing Principle #2)

By Jeffrey Meenes, CFP® (Published Date November 10, 2022)

The U.S stock market has been an engine for wealth creation throughout the past century. This is especially true when investors are mindful of how markets work, what strategies deliver success, and what not to pay attention to. How exactly can a successful investor approach the markets? In this blog tip series, we highlight ten principles an investor can follow to create a better investing experience and generate consistent returns over time.

Key Investing Principle #2 to Improve Your Odds of Investing Success: Don't Try to Outguess the Market

The market’s pricing power works against fund managers who try to outperform through stock picking or market timing. As evidence, only 18% of US-domiciled equity funds and 15% of fixed-income funds have survived and outperformed their benchmarks over the past 20 years.

Focus on what you can control.  A financial advisor can offer expertise and guidance to help you focus on actions that add value. This can lead to a better investment experience.