Fear of missing out is a sure way to make costly stock-investing mistakes (via MktwHulbert)
An earlier version incorrectly indicated that David Einhorn of Greenlight Capital had decided to quite the hedge-fund business.
A good analogy is a slot machine. Every few minutes one of the many machines in a casino will hit a jackpot, leading to sirens and bells and general hoopla. This induces in everyone else the sense that “I could just have easily been the winner” and, in turn, “let me keep trying again and again.” The key, of course, is to focus on the average. According to the Credit Suisse Hedge Fund Index, a composite of approximately 9,000 hedge funds that reflects performance net of all fees and expenses, the average hedge fund in 2018 did barely better than the S&P 500 SPX, -0.39% , losing 3.2%. While that’s better than the average open-end actively managed mutual fund, it’s hardly the stuff to trigger FOMO.
This 60/40 portfolio lost 2.1% in 2018, versus the 3.2% loss for the average hedge fund. Last year’s performance was not a fluke: Over the past 25 years, the 60/40 portfolio has beaten the Credit Suisse Hedge Fund Index by an annualized margin of 7.8% to 7.3%. A 60/40 portfolio that substituted long-term Treasurys for intermediate-term Treasurys would have done even better, producing an 8.9% annualized return.
I’m referring to The Prudent Speculator, edited by John Buckingham. I calculate that it has produced an annualized return through Jan. 31, 2019, of 14.6% annualized. In contrast, Fidelity Contrafund FCNTX, -0.65% , the best performing open-end mutual fund over this period, has produced a total return of 13.6% annualized.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Is Elon Musk trying to commit ‘suicide by SEC’ by taunting the agency?.hiltzikm writes: 'The most pressing question swirling around Musk’s behavior is: Why?'
Consulte Mais informação »
2020 Democrats are trying to redefine the idea of reparationsThe issue of reparations -- usually interpreted as making financial amends to African-Americans for centuries of slavery, racism and inequality -- has again entered the political conversation after several Democratic presidential candidates expressed support for the idea.
Consulte Mais informação »
Momo? No no. The truth behind the fear.The Momo 'suicide game' is coming back even stronger in 2019. Or is it? Fear of fear is helps media to drive clicks and drives parents to panic. Read the truth behind The Momo Challenge.
Consulte Mais informação »
Analysis | Trump and Republicans are trying to paint Democrats as radical on abortionAnalysis: Trump and Republicans are trying to paint Democrats as radical on abortion
Consulte Mais informação »
California man sentenced to more than 15 years for trying to help terroristA federal judge on Tuesday sentenced a 23-year-old Northern California man to more than 15 years in prison after he pleaded guilty to trying to support an Islamic terrorist group.
Consulte Mais informação »
#SayNoToWar: As conflict between India and Pakistan grows, civilians react with anger, fearSayNoToWar: As conflict between India and Pakistan grows, civilians react with anger and fear
Consulte Mais informação »
Beto O'Rourke supports Spike Lee following Trump attack: “Courage over fear, love over hate”Former Texas congressman congratulated team behind BlacKkKlansman following Oscar success.
Consulte Mais informação »
The FBI is trying to return thousands of Native American bones seized from an Indiana homeThe FBI seized more than 7,000 cultural artifacts from Don Miller's Indiana property in 2014. Now it is returning them to their rightful owners.
Consulte Mais informação »
A 'Heroic' Doctor Was Shot While Trying To Subdue A Gunman In A WheelchairOfficials said the Florida doctor managed to subdue the double amputee patient who opened fire in the veterans hospital emergency room.
Consulte Mais informação »