The Best Strategies Lag the S&P 500 for 5+ Years

Aug 13 09:08 2019 Print This Article

As investors, we constantly hear, “Beat the market! Beat the market!” But trying to beat the market every month or year is not the way to win the race. • The most successful investment strategies actually TRAIL the S&P 500 for five years or longer.

Figure 1. It isn’t the runner who dashes ahead at the beginning of a track meet who is necessarily the winner in the last lap. Similarly, lagging the S&P 500 for long periods during bull markets is a trait of the best investing formulas. Photo: 2017 Youth Indoor Championships, Istanbul, Turkey, by Evren Kalinbacak/Shutterstock.

• WEST COAST — Brian Livingston will give two seminars in California on Sept. 14 and 15, 2019. See the event page for details. Seminars on the East Coast will be announced soon. •

As regular readers of this column know, I’m an advocate of long-term investing. If you have a day trading strategy that works for you in the short-term, great! But tens of millions of account holders of 401(k) plans and other tax-deferred savings programs can change their positions no more than once or twice a month, as described in my one-page summary of Muscular Portfolios.

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Stockcharts.com

StockCharts.com was founded in 1999 by Chip Anderson, a 10-year veteran of Microsoft. StockCharts.com is a website that provides online investors with high-quality financial charts for making better investing decisions. StockCharts.com is focused on Technical Analysis - the study of price history via charts. They provide award-winning analysis tools, market commentary from respected analysts like John Murphy and Martin Pring, and a huge collection of educational resources that can help anyone become a better, more informed investor.

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