I’m smarter than most people, I can beat the market, right?
Doctors are used to being the best and not failing. You are well above average in terms of raw intelligence and income, and it can be tempting to think you can size up investment s as quickly as you can take a patient through triage.
So many doctors think they can ‘beat the market’, but generally speaking no one beats the market. Warren Buffet has a bet going with ten of the top hedge funds that they can’t beat the market through actively trading it. They are seven years into the bet and the market is up three times that of the top hedge fund. If they can’t beat the market with their teams of experts and researchers, then what chance do you have
It’s not about timing the market, it’s about time in the market and having an asset allocation strategy that means you’ll do well when the market is growing, you’ll mitigate loses when the market is falling, you’ll be OK in inflation, and you’ll be OK in deflation