Studies show that approximately 90% of managers have underperformed the market over the last 5 years.This means that in trying to beat the market, most managers end up making less money than had they just bought the market itself.
For example, if the market was up 10% last year, odds are the manager who was trying to beat that return ended up failing and making even less.
The market has gone up an annualized rate of 7.3% per year for the last 100 years. Historically, an investment in the stock market has doubled every 10 years. We think that’s pretty good, so why risk missing out?