For almost everyone, the wise strategy is to invest in unmanaged index funds. Please read Daniel Kahneman on the illusion of skill in investing: > Most of the

For almost everyone, the wise strategy is to invest in unmanaged index funds. Please read Daniel Kahneman on the illusion of skill in investing: > Most of the buyers and sellers know that they have the same information; they exchange the stocks primarily because they have different opinions. The buyers think the price is too low and likely to rise, while the sellers think the price is high and likely to drop. The puzzle is why buyers and sellers alike think that the current price is wrong. What makes them believe they know more about what the price should be than the market does? For most of them, that belief is an illusion.