Money Managers Vs. Average Joe Investors: Who Knows Best?
Are money managers worth their fancy cars, enormous homes and inflated salaries?
Matthew Schifrin, the VP and Investment Editor at Forbes, is anything but a supporter. “I think the vast majority of professional money managers are hired without any real proof that they're good at investing,” Schifrin told Benzinga last December. “Most of ‘em have great degrees, they went to great colleges. They come out of school and they get a job with Fidelity or one of these other big mutual fund managers, and next thing you know they're managing huge portfolios.”
As an alternative, Schifrin encourages people to learn about the stock market and invest on their own.
Charlie Gasparino, the Senior Correspondent for Fox Business Network, vehemently disagrees.
“I don't think people should be buying individual stocks,” Gasparino said. “If this insider trading thing has taught us anything, it's really telling you how rigged the game is.”
Both men provide some food for thought. Gasparino is concerned about what will happen to the little guy if he's left to fend for himself. Schifrin, on the other hand, is concerned about the way money managers handle the money they are supposed to protect.
“There are great professional investors out there, and a lot of us know who they are,” Schifrin said. “But what I'm saying is that there's no reason why you can't become an outstanding investor on your own.”
This begs the question: as a lone investor, what can you do to ensure you'll survive?
Tad Thueson, Business Development Director at OptionsANIMAL, told Benzinga that the education platform was designed with the trader in mind.
“Traders learn anything and everything they need, from the basics of fundamental analysis to advanced strategies and trade adjustment techniques which lead to greater returns,” Thueson said.
“Traders do not need prior experience in order to trade successfully,” adds OptionsANIMAL CEO Greg Jensen. "Our system of trading options allows even first-time investors to make money in any market direction, protect hard-earned capital, and ultimately achieve their investing goals."
Jensen feels that with a little knowledge and discipline, everyone can outperform the average money manager. He notes that while many investors try to predict the movements of the market as if looking through a crystal ball, OptionsANIMAL's goal is to train its students to be profitable 90% of the time – instead of 50% like most investors.
“By using the options instruments correctly, our students are able to adjust their positions appropriately to avoid many of the losses they would have otherwise taken,” Jensen said.
Traders and aspiring options experts alike can learn more by signing up for one of OptionsANIMAL's free webinars.
To read more, don't miss Benzinga's full slate of content:
OptionsANIMAL – Giving Investors The Option To Succeed
When The Average Joe Beats The Street - Matt Schifrin - Zing Talk Part 1
When The Average Joe Beats The Street - Matt Schifrin - Zing Talk Part 2
Getting Down to Business With Charlie Gasparino, Senior Correspondent with Fox Business Network - Part 1
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