When the bull market came, did most people fail to win the index fund? What is the reason for this? What should we investors do when we are in a bull market? Here is a brief explanation for you.
Some investors will ask: In the bull market, is it true that most people can't beat index funds?
The answer is yes. Why on earth? Let's take a look at the positions of index funds and investors.
Index fund positions: Index funds have one feature: they must maintain very high stock positions, most of which are above 90% - 95%.
Investor position: Most investors will not be full in a bear market, and the average position is below 50%.
therefore After the bull market rises sharply, the index fund will certainly rise sharply, and most investors will slowly increase their positions with the rise, and their returns will fall behind the index fund.
However, in the later period of the bull market, the stock market rose enormously. When the risk was relatively high, the index fund still maintained a relatively high position. At this time, we investors need to do a good job of selling overvalued.
