Why It's Nearly Impossible to Beat the Market

-- David explains why it's so difficult to beat the market and why it's best not to try to
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Pakman Finance content is for entertainment purposes only and should not be construed as financial advice. All situations are individual and unique. Please consult financial professionals directly.

#pakmanfinance #stocks #stockmarket

[EvelynMoore-nulf]

I want to start investing but don't know where to begin. Any advice or contacts for help?

[thegardencity]

I’m a conservative but I love all your shows you are an intelligent man, worth listening to. Respect brother and keep up the good work & honest reporting

[surferdude]

Excellent video! So many fianance YouTubers try and convince us that you can easily beat the market. “It’s so easy just buy the next Tesla.”

[dsanti]

No one ever got rich playing it safe . Let that sink in

[ScubaSteve]

You can beat the market if you get elected to Congress

[Rightopinionhaver]

You only really need 10-15 good stocks a decade. If you pick right you will beat the market by far

[hugegamer]

I beat the market every day. By that I mean I hit my phone while looking at how depressing the markets are.

[corcoransullivan]

David you’re awesome. I’ve been watching you more and more over the last year or two and I’m very impressed with you intellect and honesty. Thank you and keep it up!

[kristopherrainbolt]

Your 100% wrong. Read any Peter Lynch book.

[TGIM]

I learned this the hard way, I knew every single thing you said but still fell in the greed trap of options and trying to time the market. Meanwhile my pension that only allow trading in diversified funds whooped my butt. I'm back on track, spend my time enjoying myself and invest only in cheap index funds.

[RigelOrionBeta]

Another important thing to remember about why you should invest in index funds: you won't ever lose all your money. If all companies in the S&P 500 go bankrupt instantly, which is what would need to happen to lose all of your money if it's in a S&P 500 index fund, the entire economy would be in a greater depression than we have ever seen. Things would be so much worse than any other depression we have ever had. You'll have much greater things to worry about.

[Stephenb]

I’ve noticed Prageru (yes that disgrace) have started a video series of basic finance concepts.

[AdamantGremlin]

Enjoying the new channel. Have a good one.

[coldscooter]

It's amazing how many retail investors try to pick stocks and try to time trades in/out. They are basically funding passive investor's returns.

[robsquared]

It's easy to beat the market...with a time machine.

[rayseakan]

If you are using the S&P 500 Index as a representation of the Market, it is actually not that hard. Jeremy Siegel of Wharton has done a lot of research that indicates that any S&P Index not capitalization weighted does better. It could be equal weighted, weighted by dividends, earnings, etc. All outperform the standard S&P Index represented by the ETF, the SPY. Ray S.

[peterburkard]

I generally agree but what about buying the dips with good companies when there is clearly a significant dip that was unexpected and puts almost all stocks "on sale"? I'm thinking of a COVID-like dip. The stocks I bought at that time (ones I'd already been watching and that fit my ESG perspective) are way up, even after the recent bear market.

[johnchessant]

The empirical evidence is there and I don't dispute it, but I'm still kinda puzzled. If the S&P is the average, then shouldn't about half of randomly chosen portfolios do better and about half do worse? How is it that active funds manage to nearly always do worse?

[puffles]

I wonder if you are or were a finance teacher David? Because you are so knowledgeable and it’s always a treat to listen to you calmly explain these concepts. Keep up the great work! Glad I found your channel and got out of cultish trumpian right. Some on the right aren’t so bad, but the fact that a lot of people that support trump are against LGBT people was sickening to me and I checked out a bunch of more left leaning channels. I still agree on some points on the left (probably just some economic stuff), but I definitely am more on the left now. I’m just glad your channel.

My first sentence was kind of bad grammatically but ya get the gist I’m sure.

[jry]

So glad you are doing this channel, David. Investing is something too many of our fellow liberals/leftists shy away from for obvious reasons.