Why I Stopped Believing You Have to Choose Between High Returns and Low Risk
- Fabio Capela
- Low volatility investing , Risk management , Portfolio optimization , Systematic investing , Investment strategy , Volatility control , Asset allocation , Risk return analysis
Every investor gets told the same story: if you want high returns, you have to accept high risk. Want to play it safe? You’ll have to settle for mediocre returns. It’s supposedly the fundamental law of investing, as immutable as gravity.
Read MoreThe Truth About Beating the S&P 500: What 8 Years of Real Trading Taught Me
- Fabio Capela
- Market outperformance , Systematic investing , S& p 500 analysis , Investment performance , Portfolio management , Risk management , Quantitative finance , Active investing
I’ve heard this phrase countless times from financial advisors, academic researchers, and fellow investors. The conventional wisdom is clear: 90% of professional fund managers fail to outperform the S&P 500 over ten years, so why should individual investors even try?
Read MoreWhy Most DIY Investors Underperform (and How to Fix It)
- Fabio Capela
- Finance , Investing strategies , Portfolio management , Risk management , Behavioral finance , Diy investing , Asset allocation , Passive investing
The promise of DIY investing is appealing: take control of your financial future, avoid advisor fees, and potentially beat the market. Yet research consistently shows that self-directed investors typically underperform major market indices by a significant margin.
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