Solutions

The Collective Brain
The Collective Brain

It may be easy to understand the allure of stock picking, but looking for a needle in a haystack is not the answer. This pursuit may be very lucrative and diverting for stock brokers. "After all, it’s exciting, fun to dip and dart, pick stocks and time markets; to get paid high fees for this, and to do it all with someone else’s money," quips Rex Sinquefield1. Unfortunately, however, this well-worn pursuit has proven to be far less rewarding for their clients.

Picking stocks or bonds is an ill-fated pursuit that wastes time, energy and money. The better solution is to trust the collective brain, buy the haystack, and maintain risk-appropriate exposures in low-cost globally diversified index portfolios.

Step 3Stock PickersStock Picking SolutionsNeedle in a Haystack