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 THE CHALLENGE: TO BEAT THE MARKET
 

   This is a translation of the former paper published by André Gosselin on the OrientationFinance.com web site on September 09 2005 ( Read the original paper in French here).

 

   André Gosselin, the author of an eight book series of about the practice and the theory of the stock market investment write that beating the market, for an investor, simply consists in trying to obtain a yield better than the average.

   It has to do with doing better than the benchmark indexes, the pulse of the market: the Dow- Jones or the S&P 500 in the United States and the TSE 300 in Canada. It is all one challenge since only a minority of the mutual funds succeeds in doing better than the indexes over a ten years period. It is however a must for the small investor to manage to do it if he wishes to build a retirement revenue up to his expectations.

   Gosselin reports that Chase Investment Performance Digest evaluates that the portfolio yield of a typical American family was 5,71% per year during the last 30 years. Then, how to do to achieve this difficult task that is to beat the market? The answer is to use a well-tried placement strategy, and then to act with discipline and rigour.

   There are several strategies which have been proven reliable and which are still perfectly applicable. The author works out the subject in depth in his books but there are five principal criteria to follow so that these strategies are well adapted to the individual investor: it must be valid, exact, comprehensible, simple and systematic.

   When it is known that some strategies manage to beat the market by several points, the investor has advantage of being very well informed on these strategies and to understand well the criteria to be followed Please note however that the investment strategies are subject to the market turbulences, the discipline is then required during these difficult periods. It is during those times that the investor best friend must step in: patience. The market historical trends always give reason to the one who can wait.

   André Gosselin

 
 
 
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