Do Less, Not More with Your Portfolio

1) Where Is There an Edge in the Markets? We all know about the advent of the index fund. This has led to a revolution in how investors put money to work. Many are choosing just to own an index such as the S&P; 500, yet with so many investors indexing, shouldn’t investor performance be getting better? The fact is that performance is not getting better, and most mutual fund and ETF investor performance continues to lag significantly. In this week’s leadoff segment, I tell you why investors are woefully underperforming the major indices. I also show you some of the most common mistakes to avoid. Plus, why you should manage your money like it was your mom’s money.  2) Do Less, Not More with Your Portfolio What are the keys to improving portfolio results? Well, there are many, but one is to just “do less.” That means avoiding selling too quick, and buying too fast. And, avoiding the tendency to tinker too much with your money. Find out more about how to “do less” in this week’s middle segment. 3) Small Companies Outperform Large Companies  Forget the adage, “Think big.” The real key to getting an edge in markets is to know that bigger isn’t always better. In fact, smaller is better when it comes to historical returns. In our final segment, I provide some hard, academic data showing the outperformance of small caps vs. large caps. After you hear these numbers, you’ll want to “Think small.” Finally, I answer a few great listener questions.