written by reader DOW Vs Promoter Returns ???

By drogrs8455, January 18, 2014

My mind remains confused by the comparisons of all these newsletter performance evaluations that tells us how great their recommended stock performance was when they had average return of say 20% while the DOW gained 30%. What am I missing? Just buy a DOW index fund and make 30% right? Seems to me a newsletter evaluation that was 40% gain over the DOW 30% would be an impressive winner and warrant the praise of being an outstanding newsletter. HELP. I do not understand.

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Travis Johnson, Stock Gumshoe Recent comment authors

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Travis Johnson, Stock Gumshoe

I think you understand it pretty well! Newsletters and active managers have a devil of a time beating the market anytime, but it’s even harder when the market is in bull mode. I’ve seen a few of those ads that say something like, “see our 2014 picks because our 2013 picks included several 20% winners!” Relative returns and opportunity costs are important, but so is your perspective — if you buy a newsletter looking for an education, some interesting ideas, and perhaps some amusement, you’ll find many that you probably like … if you buy looking for a portfolio to… Read More ยป