Some one on this thread said that if it was so easy to outperform S&P why not everyone doing it. The reason is because of all these fees that the funds are charging their clients. They need to show that they are actually smarter than the market, that they are doing something incredible convincing the clients how smart they are by choosing this fund. In reality if general public only knew that by simply investing 80% of their capital in S&P and splitting 20% between bonds and small/mid cap they would outperform close to 80-90% of funds (returns after the fees). But everybody wants next Buffet or Lynch, the obvious problem with is that no one knows ahead of time who these few individuals will be. I do buy lottery tickets occasionally, but I do not spend more than $10 on tickets. Regards, redduke
Here is simple chart how to outperform the SP like crazy, not like in the dream by only a few %. Again, playing only 1:1 leverage, I give you guys as a homework for the weekend to count just how many extra points or % you would have gained if followed those Buy and Sell signals. My guesstimate is so far 20%, but I must be exaggerating...