This week we asked the Invstr Community what they thought was the most effective way to beat the market. The polls revealed a fascinating divide. Coming in the first place and with a massive 44% of the vote was publicly available information, one of the broadest categories with lots of potential warranting the number one spot. After all, nowadays, almost anything you could ever want to learn is online – and with Invstr- The News Feed and Academy have all that investing information packaged neatly to make learning more accessible than ever. The Invstr community clearly loves to learn and are self-starters, so public information is a great choice.
Next up and earning a silver medal for second place is flipping a coin; that’s right, beating the market can be a game of 50/50 odds. Some experts have even explored this idea further; for example, Reel Ken, a statistician, explained that just as with the stock market, the Coin Toss outcome is determined by a myriad of factors: initial position, force, velocity, gravity, humidity, friction, and elasticity to name just a few. Just as with the stock market, if we could identify and quantify all the factors, we could predict the toss. Whether or not the Invstr community was thinking this deeply about it, who knows, but the randomness of the stock market is undeniable, and comparing it to flipping a coin is another fine choice.
Coming in a close third place is following the top Invstrs on Fantasy Finance and last is Paid Public Information. Following Invstrs is based on pulling portfolios from other Invstrs and following what they do. One obvious challenge to this is timing entries, and exits. On the flip side, going off of Invstrs with a track record that is better than yours, logically checks out. This is known as a “piggy-back” strategy.
Lastly, Paid Public Information is not as popular, as why pay when it is free?! But some people like to pay for a market “experts” interpretation of public information.
All in all, each approach has its merits and introduces thought-provoking questions helping all of us grow as Invstrs! As the investing world continually evolves and different investments perform well, staying up to date will be necessary. To keep on top of all the latest news, check in with Invstr Crunch daily!