Why You Can’t ‘Beat The Markets’

Do take 2 minutes and watch this short video.

wisdom-of-crowdsIn ‘The Wisdom of Crowds’, James Surowiecki explains how groups can be remarkably intelligent – often more so than the smartest people in them.  This is particularly relevant to the price of individual stocks, or indeed other financial assets that are efficiently traded in a broad open market. 

Dimensional Fund Advisors call this ‘The Power of Markets’, and in the above video they elegantly explain why you can’t beat the market – because the price is already ‘right’ on the basis of known information and crowd wisdom.

Popular Posts

Tax Free Savings Plans for Australians?

How to Read a Fund Fact-Sheet

Dollar Cost Averaging

British Expat? Here are the Huge UK Tax Benefits of an Offshore Investment Plan...

Investment Outlook For 2018

Roy Walker named winner Best Financial Planner (Financial Advisory Open Category) at the 2018 FPAS (Financial Planning Association of Singapore) awards.

Stroke Victim Trapped in UAE Four YEARS Because of Debts

Should UK Expats Pay National Insurance Contributions?

Mobile Phone Screens Are Getting SMALLER!

I’ve Recently Arrived in Dubai. Will I Pay UK Tax on my UAE Income?