FYI: If we look at “the market” of financial assets from the 30,000 foot perspective then an obvious reality becomes clear – there is actually ONE portfolio of all outstanding financial assets. And that portfolio generates its return every year and the holders of those assets will generate a return that reflects this top line nominal figure. The real, real return (the return that goes into our pocket) is this nominal figure minus inflation, fees, taxes and other frictions. In the aggregate we all fail to “beat the market” because we all represent the market.
Regards,
Ted
http://pragcap.com/beat-the-average-investor-by-not-trying-to-beat-the-market
