The Reality of Active Fund Performance

Today’s Daily Byte

The market dipped initially in the first half of the day, but towards the later second half, there was a very sharp recovery, catching all bears on the wrong foot. A lot of algorithms probably lost money today. The market is clearly sending a message: “I don’t care what Nvidia’s results are; I don’t care what bear market operators are thinking; I am going up right now.” The support came through at 25,000, which is a very positive outcome, at least for the large-cap moves in the market today.

Today, we are going to discuss the AI bubble, and whether we should be wary of it. We’ll explore how the entire segment is looking versus historical bubbles. We’ll discuss all of that, although we will continue to follow the price trends closely.

Reading Time : 4 Minutes

Many Active funds underperform and don’t survive

Investing in active funds has always been a popular choice for many investors. These funds are managed by professionals who try to outperform the market by picking the right stocks.

However, new data spanning nearly 30 years from 1992 to September 2022 tells a different story about how these funds actually perform.

The results are surprising and shed light on a critical issue in the world of investing. . . . . .

Reading Time : 2 Minutes

The Truth is only the Price

In the world of investing, predictions are everywhere. It’s common to hear about big price targets from fund managers, but the reality often turns out differently.

A recent example shows how even the most confident predictions can fall flat. A well-known fund manager placed a target on a popular video conferencing company, Zoom, expecting its stock to hit $1,500 by 2026. She initially bought shares at around $280 each. However, after seeing the stock rise and then fall dramatically, she had to exit her position at just $67 per share.

This example highlights the unpredictability of the stock market.. . . . .

Reading Time : 3 Minutes