The big fund managers often have an army of analysts, data tools and sell-side research providers to help them navigate the complexities of the financial markets and try to outperform their benchmarks.
This begs the question, what chance do retail investors have given their infinitely more limited resources? But there are a few factors on the ordinary man's side. Investment managers tend to be constrained by the fund's objectives, which means they are less able to pivot when market conditions change. There may be other reasons you want to directly choose the companies you invest in. Investors split on whether AI investment case can justify Magnificent Seven's cap-ex growth First-hand knowledge or experience of a particular sector can help give an edge over the generalist. T...
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