Should Beating the Market Be Your #1 Priority?
people think so. We know the answer to be decidedly "NO."
Out-performance is not a financial goal and never should be. As one financial planner puts it,
"An income you don't outlive in a three-decade retirement full of dignity and independence, now that's a financial goal." We agree.
Financial columnist Nick Murray observes, "Most Americans get most of their financial input (along with most of their
'news') from electronic
and print journalism. And all financial journalism proceeds from the toxic assumption that you should be trying to beat the market
- to perfectly
time your entrances into and exits from the markets, to switch asset classes at the most opportune times, and even move from one country to
another in an actively opportunistic way.
"This is madness, but it's a very seductive kind of madness. Because, like
all systematic delusions, it has a certain very compelling internal logic to
it - once you accept its totally false (and evil) premise."
We have been amazed (and maybe shouldn't be) about how many very smart, very wealthy people make such dumb moves with their money. They move
from fund to fund. Broker to broker. Money manager to money manager. All in quest of the Holy Grail of
"Superior Performance" that simply does
not exist. They always chase the tail of the comet, which as we all know is about to extinguish.
Live Healthy & Wealthy!
Bill and Mary Staton
"Wall Street is inherently short-term oriented. The investing public wants instant gratification. They want to keep up with the Dow Joneses,
and they want their fund to 'beat' the other funds and comparable indices on an
'instant' basis - quarterly and annually.
"That is not what investing is about. It is about reaching your long-term
financial goals while taking the least necessary risk."
--The Financial Times