"Unveiling the Secrets: Is Beating the Market Within Reach?"

Despite recent reports suggesting that a significant number of actively managed funds and ETFs are beating their benchmarks, it is not easier to beat the market. The argument put forth by William Sharpe in 1991 still holds true: on average, active managers must lag behind broad market indexes. While some managers may outperform in the short term, it is a zero-sum game before transaction costs and a negative-sum game after. One solution is to create separate portfolios, one for long-term index fund investments and another for speculative attempts to beat the market, acknowledging both the arithmetic truth and the psychological belief in one's ability to outperform.