The tendency of investors to underperform the stock market, even before taking mutual fund expenses into account, is well documented. TrimTabs Investment Research, for instance, found that the average level of the Standard & Poor’s 500 SPX, +0.12% in the 10 years through July 2010 was 1,171, but the average dollar invested in stock funds during that period occurred at an index level of 1,434.
Markets Saw Trump Bump, Then Hit a Speed Bump The Trump bump in the stock market ran into trouble when the Republican effort to “repeal and replace Obamacare” foundered in Congress and the Federal Reserve increased interest rates, raising doubts that developments in Washington would treat the markets as kindly for the rest of the year as they appear to have done right after Election Day.Read Full Article »
The next crop of next big things to go public may include the ride service Uber, the biggest object of private-firm equity investment cited in the Morningstar study, and the service Airbnb. Buying ahead of the crowd carries great reward potential but also significant risks, analysts and fund managers say.