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Showing posts from June, 2016

Why Chase Alpha

Why do people try to beat the market? Barry Ritholtz interviews Burton Malkiel in this podcast . I'm a big fan of both, but felt uneasy when they seemed to chuckle at investors who seek consistent market-beating returns despite decades of evidence that such a feat is incredibly rare. I don't subscribe to the idea that the markets are wise while investors are dummies. Knowledge of the returns you can expect is only a Google away. People wouldn't swing for the fences if they could live with hitting a few grounders. Could average market returns then provide for the man on the street? More specifically, would it enable him a decent retirement?