If I Could Tell Every S&P 500 Investor Just 1 Thing About the Stock Market Right Now, It's This.
Fortune favors the patient.
Overview
Many investors try to beat the market by picking individual stocks or investing in actively managed funds. But over the long term, the vast majority of individual stocks and actively managed large-cap funds have underperformed the S&P 500 (SNPINDEX: ^GSPC).
The reason is simple. The S&P 500 is rebalanced each quarter to always include the 500 largest companies in America. Rapidly growing companies are added to the index, while the weaker ones get pruned. It's tough for individual stocks or funds to match that efficiency.
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Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.