Investing Myths

Many investment professionals focus on evaluating and selecting specific issues (stocks/bonds) rather than on the portfolio as a whole.

It is a common misconception that skilled professionals, with their financial resources and information gathering abilities, should be able to consistently “beat the market.” Supposedly, sophisticated securities analysis and selection allows “timing” moves into and out of the markets. This assumption is based on the premise that markets are inherently inefficient, thereby allowing investors with superior skills to outperform benchmarks of market performance.

At SKM Wealth, we know that most academic and industry research supports the concept that markets are efficient and advise you accordingly. (The nature of efficient markets is such that all participants have the same overall information about the markets in general ... and specific issues in particular.)