Contained in the video below is our discussion about whether it’s wise to try to time the market and/or select individual stocks when making investment decisions. Generally speaking, many (perhaps most) respected academics believe that the stock market and the direction of individual stock prices is so difficult to predict that unless one has (often illegal) insider information, that the most educated and skilled investor cannot beat the returns that an amateur rookie would receive on his investments if the amateur randomly selected stocks knowing nothing at all. Discussions of modern portfolio theory and the efficient market hypothesis (EMH) (it has stong, semi-strong and weak versions) are included. Market risk (beta) and transaction costs play a significant role.
Here it is our new/improved/revised video on stock picking…and/or the futility thereof.
DDL
Once again nothing stated inthese videos should be construed as making particular recommendations to buy/sell or hold any particular stock, bond, mutual fund, annuity or insurance product. Consult your attorney, financial advisor, CPA or insurance agent for any and/or all your needed advice.