Confronting the Challenge of Standard & Poor's Benchmark Numerical Index...or Not
Are there any techniques available to assist you in consistently competing with the S&P 500 Index? If so, what are they? And if not, why? These queries are addressed in a posting entitled "Creative Criteria" (https://www.howtoinvestblog.net/2021/11/creative-criteria.html) by Anthony Rhodes. The essay is a recent addition to his popular "How To Invest" blog (www.howtoinvestblog.net). Mr. Rhodes is the owner of wealth management firm The Planning Perspective (www.theplanningperspective.com).
"The S&P 500 is a collection of the 500 largest companies in America, so it's not all that surprising that investors of all types fail to surpass it over specified amounts of time." he began. "You are competing against many of the very best companies in the world, after all, which means your strategies have to be spot on in order to come out on top." he continued. "This can often prove to be an insurmountable challenge for many, including most professionals." he added.
So, what should an investor do should he or she decide to take on this challenge? Or would it be simply safer to purchase the index itself, and forego the selection process altogether? Mr. Rhodes offers some perspectives regarding these issues.
"Regardless of how formidable the S&P is, there will always exist a desire to outperform it." he stated. "While there's no shortage of tactics available to assist in pursuit of this goal, what I try to provide within the post is a rationale for methods which may lie outside the usual pathways for doing so." he continued. "I also discuss the importance of developing techniques which might not be considered as mainstream ideologies, but may, nonetheless prove to be worthy of possible implementation." he closed.