I just saw a video of michael reeves that made a fish pick stocks and compared it to listening to wall street bets. I think that the fish also outperformed the market.
If a fund manager wanted to blow the market away, his best bet would be to pick a few small caps. However, this would also increase his chances of being beaten dramatically by the index. Plus it would not make it through a committee. Thus most managed funds stay conservatively close to the index, minus fees.
Some time ago I wondered if young people might be better off putting their retirement funds in an equally weighted or small cap index fund. I had a look at the performance of some of these vs SPY and their performance over the last decade looks about the same. Could be that the god of efficient market hypothesis has spotted what you noticed and is already pricing it in. I'm not sure.
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I just saw a video of michael reeves that made a fish pick stocks and compared it to listening to wall street bets. I think that the fish also outperformed the market.
https://www.youtube.com/watch?v=USKD3vPD6ZA
If a fund manager wanted to blow the market away, his best bet would be to pick a few small caps. However, this would also increase his chances of being beaten dramatically by the index. Plus it would not make it through a committee. Thus most managed funds stay conservatively close to the index, minus fees.
Some time ago I wondered if young people might be better off putting their retirement funds in an equally weighted or small cap index fund. I had a look at the performance of some of these vs SPY and their performance over the last decade looks about the same. Could be that the god of efficient market hypothesis has spotted what you noticed and is already pricing it in. I'm not sure.
TL;DR small caps & value stocks are better in a recession
If this is true, how can this information be used to re-evaluate "lazy" portfolio performance?