Professor Charles D. Ellis of the Rebalance Investment Committee explains how dominant players in the public stock markets set a high bar for those investing retirement funds — so high that beating them is unlikely. Learn about passive investing and your retirement funds.


When you are out competing and trying to beat the stock market you have to understand you are competing to beat the smartest people in the market because they are the ones who set the prices. So you are taking on…half the trades that you will do on the stock exchange are against hedge funds. They are very well paid, carefully chosen people. They are really playing hardball.

And, very hard to beat them because they know so much, and are so skillful. And that’s the problem with individuals investing. You may be very good compared to your neighbor. That’s not the question. Are you very good compared to those that control the market and are the dominant players in the market; very, very few people are anywhere near that good.

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