In an interesting update today we see that a number of Monkeys managed to select shares at random and beat returns from Tracker Funds. What interests me more about this story is a couple of weeks ago there was another story outlining the fact that
Randomly picking shares did not beat the Index Tracker funds. So what way to invest?
My response is pretty straightforward. Randomly picking anything is never a way to invest money.
You have to carry out some research and you have to make a plan, this plan should take into account the following
as a minimum.
1.What is happening in the markets – are they trending up or down.
2.What is happening with the economy generally – is the outlook positive.
3.What is your overall attitude to investment risk.
4.Is there an ETF you can buy that will do what you want.
These points are just a start but will beat Monkey’s everytime.
Making any investment on a random basis has always been madness, always will be.