Can you “beat the market?”

interest rate“Beat the market.” It seems the goal of investors is to get better returns. To do this the objective becomes beating the market. And to do this one would need to chase the returns in those areas that appear to be doing so.

Is it possible to beat the markets? Here’s a blog that explains five ways how. One way is to cheat (example: insider trading). Another way is to win the lottery. The next three discussed are sounder. Astute predictions. Don’t follow the herd. Hold a diversified portfolio.

Predictions are hard (if not impossible to be consistently correct – a prerequisite to staying ahead). “These last two methods of beating the market are not nearly as exciting as cheating or winning the lottery.” “The safest methods also happen to be pretty boring–and, alas, they don’t come with guarantees.”

One safe method is to BE the market rather than try to BEAT it. See the below video for a short segment on these.

With less volatility of the portfolio overall, you actually end up with more dollars as compared to a more volatile portfolio. So it’s more the sum of the parts rather than one part at a time. Your serious money meant for your real goals should be invested prudently towards your goals. Once you’re on track to meet those serious needs, then you have room for “more fun” investing (speculation). Keep in sight what you are really trying to do.

About Larry Frank, Sr.

Larry R Frank Sr., MBA, CFP®, is an experienced financial advisor and a published author on Retirement Planning Research. Have a financial question? Click Here to Ask Larry

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