7 ms·
Have you back tested this hypothesis? It’s very unlikely to be true over a long period, say 15 years.
by c0pium 3y ago
Have you back tested this hypothesis? It’s very unlikely to be true over a long period, say 15 years.
- ghaff 3y agoHard to say. Everything invested in the NASDAQ over the past 15 years would have been a great strategy. (Edit: high return strategy. Not necessarily a "good" one.) The 15 years before that probably not as good. Putting money in a small number of index funds and not even looking at them probably isn't a bad strategy and the costs are pretty low. But it's not bulletproof. I look at the financial advisor/firm as a form of diversification in part. I also keep my own portfolio small enough to have some (hopefully) intelligent opinion on whether the investments still make sense. (Including a decent weight on index funds.)
- c0pium 3y agoIt’s not hard to say though, back testing is trivial. There are very few market-beating advisors, and the longer you look the longer the odds get.