A closer look at market performance

When asking investors for their goal, I often hear them say they’d like to “beat the market”. This goal dates back to 1973, when Princeton professor Burton Malkiel claimed that “A blindfolded monkey throwing darts at a newspaper’s financial pages could select a portfolio that would do just as well as one carefully selected by experts”, see his book A Random Walk Down Wall Street. So “beating the market” is really about “beating the monkey”, as probably we would all like to do at least a little better than that poor trading monkey. Continue reading “A closer look at market performance”