If you are interested in the small cap biotech space but do not want to have to
pick individual stocks for yourself, I think this ETF is a terrific way to go.
In regards to your comment about index funds, retail investors rarely beat the
market picking individual stocks and are better off putting their money into index funds.
They are trying to carry rules they
learned picking individual stocks into the world of index investing and finding themselves rooting for the wrong thing as a result.
While I suggest new investors always buy diverse funds like an S&P 500 index fund to start, if you are building a larger portfolio and want to try your
skill picking individual stocks, it is important to keep track of your investments.
I talk more about
picking individual stocks in the stock investing course and offer another course that shows you exactly how Wall Street analysts pick stocks.
On most discretionary, day - to - day aspects of investing, for example,
picking individual stock picks or the direction of interest rates, Wes believes firmly that he is completely wrong almost all off the time, whereas Vic (Niederhoffer) believed he could master the markets.
Just
as picking individual stocks is fraught with risks, so too is picking individual ETFs that may be much more concentrated and volatile than SPY or AGG.
What's the point of
picking individual stocks if I lose against the markets... This got ta be added to reasons why I am in semi-midlife crisis mood lately pool.
In a recent interview with CNBC, Greenblatt shared his opinion that «most people shouldn't be
picking individual stocks unless they know how to value businesses.
WARNING - no one should consider themselves qualified to
pick individual stocks based on the knowledge from the Investing Basics section only.
«I myself have always used an indexed foundation or core to my portfolio and
then picked individual stocks and other securities — sometimes called core and explore,» says Kirzner.
While I suggest new investors always buy diverse funds like an S&P 500 index fund to start, if you are building a larger portfolio and want to try your
skill picking individual stocks, it is important to keep track of your investments.
This morning's Wall Street Journal cites an adviser who opines that «the current stock market environment favors... active fund managers,
who pick individual stocks in an attempt to beat broad market indices.»