S&P Dow Jones Indices revealed that 90% of active fund managers failed to beat the S&P 500 over the last 15 years, highlighting the difficulty of outperforming the market. Behavioral biases like herding and overconfidence contribute to this underperformance. The Money Guy Show recommends everyday investors use dollar-cost averaging into low-cost index funds like SPY or VTI, a strategy proven to build wealth steadily over time. With rising Treasury yields, the hurdle for active managers is higher, making automated, consistent investing a reliable approach for most investors.
The iShares Core S&P Small-Cap ETF (IJR) has lost much of its valuation advantage relative to the SPDR S&P 500 ETF Trust (SPY) due to recent price and earnings changes. Additionally, the outlook for interest rates now suggests a higher chance of rate...
April's Producer Price Index (PPI) rose 1.4% month-over-month, the largest increase since March 2022, driven mainly by services rather than goods. Despite this, the broader market reaction was surprisingly muted, indicating no widespread inflation co...
The Vanguard FTSE Developed Markets ETF (VEA) has outperformed the S&P 500 over the past year and year-to-date, returning 34% and 12% respectively compared to the S&P 500's 27% and 8%. This shift is driven by factors including valuation discounts in ...
NASDAQ is waiving its usual six-month waiting period to include SpaceX in its index immediately after its IPO. This forces NASDAQ-tracking ETFs, like the $385 billion Invesco QQQ Trust, to buy roughly $7 billion of SpaceX stock in one day, selling ot...
Sam Parr holds 80% of his portfolio in the S&P 500 despite Howard Marks' warning that the index's high valuation could lead to low returns over the next decade. Parr argues that while Marks' forecast may be mathematically correct, the opportunity cos...
