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Matt's Market Insights

How have your investments fared during 2014? Have you stayed the course and kept at least part of your portfolio invested in this relentless equity market? If so, how does your YTD performance compare to the S&P 500, which as of Friday's close was up over 8%?

 

The most common benchmark for fund managers is the S&P 500. If a fund manager is able to generate higher returns through clairvoyant stock picking, he or she has achieved the illusive goal of "outperforming the market." This is the holy grail for fund managers, even if the comparison can be ludicrous at times.

 

I've heard fund managers brag about how they beat the market by 4% ... the S&P may have been down 30%, but hey, they were only down 26% ... success!

 

Beating the S&P shouldn't be your measure of success, although it does represent a decent benchmark for general comparison purposes. The reason beating ... Log in or subscribe to continue reading.


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