Here is an actual Wall Street Journal headline that popped up on my phone last week, “Almost Half of Stock Pickers Beat the Market in Early 2022 Selloff.” The subheading went on to exclaim that this was their best performance in 13 years.

Let me get this straight. 49% of U.S. large cap stock pickers achieved their goal by beating the S&P 500 Index over the first six months of 2022. That means 51% failed. And this is the best they’ve done collectively in over a decade. What is there to celebrate here? Was the bar really so low that more than half failing is considered a success?

Before you tell me that’s too short of a time period, the long-term numbers are consistently worse. You can see why we don’t overpay for traditional stock picking. I rest my case.

About the Author:

John has more than ten years experience as an Investment Advisor. He focuses on devising and maintaining portfolios that meet individuals’ needs, investment research, and investment strategy. John has been recognized as a “FIVE STAR wealth manager” by Twin Cities Business Magazine 2016-2022. He is a CFA charterholder and CERTIFIED FINANCIAL PLANNER™ Professional.

Legal Disclaimer: These posts do not constitute an offer or recommendation to buy or sell any securities or instruments or to participate in any particular investment or trading strategy. They are for informational purposes only. CTW gathers its data from sources it considers reliable. However, CTW makes no express or implied warranties regarding the accuracy of this information or any opinions expressed by the author and may update or change them without prior notification.