"I have never heard of an entity that could make money in all kinds of markets consistently, year in and year out. Yet we continue to believe that there will be one. It is, like much else in finance, a myth that will not die. I have never heard of a financial manager who promised to be able to defeat the markets anytime he chose and who, in fact, was able to do so. Even Mr. Buffett says repeatedly that he will have losing years and losing stretches of years. (Wow, is he right this year.)"
If its sounds to good to be true, it is. Lots of money was lost because people believed something they knew was not possible, but hoped for their sake it was. Interestingly enough, many of those who lost money never needed to take on such risk, they were wealthy and even investing their money in a low risk, low interest investment would have yielded them more money than they ever could have spent - they violated the first rule of investing - never put at risk anymore than you NEED in order to meet your goals. Some people must invest in stocks - it is there only hope, others don't need to take any risk.
Scott Dauenhauer CFP, MSFP, AIF
