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As fas as I know the more people use the strategy the worse it performs, the market is not static, it adapts. Other people react to the buy/sell of your strateg
by madmask 2y ago
As fas as I know the more people use the strategy the worse it performs, the market is not static, it adapts. Other people react to the buy/sell of your strategy and try to exploit the new pattern.
- JonChesterfield 2y agoThis is an interesting observation in combination with the popular pension strategy to continually buy index funds regardless of performance.
- ericjmorey 2y agoThe average return from index funds is the benchmark that all those others are trying to beat but all the competitors trying to beat the average have a tendency to push successful strategies towards the average.
- bossyTeacher 2y agoIt only works until most people do it