The incredible true story of 1-2

 Chapter 2, the incredible true story of
buy index mutual funds, most of the profitability of individual investors get better.
Mm, former manager of Fidelity Magellan Fund, Peter. Lynch (PeterLynch), < br> mm of these investments by some financial planners used for my so-called > In stark contrast, trillions of dollars of pension funds and university endowment funds and other investment assets have chosen the right direction mm financial planner will be invested in broad market index of stocks and bonds, the effort to obtain market income, this is the :
you do not always pay attention to the financial media coverage;
you without any effort from experts to analyze the hands of those who say, the mountains, often conflicting and confusing information;
relatively low cost .
financial planner is a finance and investment professionals for others. They based on certain criteria, to individual funds, pension funds and other donor funds into the market. financial planner remuneration is normally based on the percentage of the total funds invested . Therefore, if the customer a return on investment, will also increase their income.
performance significantly;
vast majority of investors do not need the help of consultants and brokers, commissioned by big fund companies can be directly or the purchase of exchange-traded index funds (ETFs) trading;
only takes about 90 minutes each time.
Why, then, experienced investors of the investment strategy and investment approach for most investors between there will be such a big gap? This is because most of the major brokerage firms for help investors, financial consultants or hire independent financial advisers, and these consultants earn through the sale of financial products and agency fees.
fact, all brokerage firms Most financial advisers and independent financial advisers by The truth
investment in the If they admit that they can not or choose stock market forecast, they will tell customers they can put the customer's money to be able to do these things financial planner.
market forecast is the forecast the stock market is at the peak or trough , which allows investors to benefit from an activity such predictions.
choice selected stock is undervalued at some point in the future there will be a good stock market performance.
However, it is few unique insight, recognized evidence that anyone can succeed in a long time always predict or correct for market stock selection. In fact, all evidence is obtained to the contrary conclusion. Of course, every year There are also some financial planner can be ahead of their benchmark indices outperformed the market, but very few financial planner to do this for many years. However, if you go to statistics about the case, can outperform the financial planner is the number of People can speculate based on statistical probability of the number of people out. They beat the market does not prove the fact that they are better than anyone else, but should be attributed to the laws of statistics.
financial advisor, financial planner and co- fund managers attempt to outperform the market, they engaged in what I call character.
smart investors will avoid the consultants and financial planners, fund managers directly under the guidance of the investment, because these fund managers know: there can be unexpected good profit, only to gain market revenue is the investment the best returns.
you should invest in this way for market profits mm.
If you do not accept this proposal, that is ravaging their own. These securities trade to increase the cost and reduce the value. tell customers that they can outperform those consultants who can really guarantee success in one area of the customer mm pockets into their own pockets.
Why is the cost of over-active investors so high? < br> over-aggressive management of the biggest problem is spending big. Because of the additional taxes and other hidden costs, expenses become large. In this way, even after a long period of time, over actively managed investment may not be better than the relative stable market investment.
securities industry by the brokers, investment banks, insurance companies and other entities, it is the duty of issuing stocks and bonds, and is responsible for its packaging, to the market, in order to promoting corporate and government entities to raise capital, and to benefit investors.
too aggressive brokers and investment advisers of the success is not success but the success of sales. They are based on the successful sale of the following five kinds of wrong idea:
too aggressive brokers and consultants can beat the market.
over-aggressive brokers and consultants to successfully market forecasts.
market forecast and stock selection is important. < br> The more expensive products or services the higher the value will be higher.
high or something more valuable brand.
means this is a confused, they rely on millions of dollars of advertising effects to convince you, so you have to listen to these They do more things conducive to their own.