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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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