I am not lying to you if I get acquaintances telling me that they have contracted passive funds every week. Their way of justifying it is “it has grown 80% in x years”, “you always make money in the long run,” etc.
On the one hand, I think these are end-of-cycle comments. On the other hand, if we all do the same, we are NOT all going to retire with 30 years and a portfolio full of money.
I have already defended many times the position of going against the markets (or contrarian investing). If you lose the best 20 days of the S&P 500 over the last 30 years, your investment return will be negative. And, if you invest for what has risen the most (as is the case of the indices), you will most likely have already lost at least 10 of those 20 days, and your returns will be mediocre like that of the average investor.
If we want to obtain extraordinary results by investing in stocks, we must go against the market. Of course, the stock markets are not a zero-sum …