Beating the S&P 500 The Foolproof Way of Beating the S&P November 2, 2007 Bernanke cut rates once again. Markets responded. The Standard & Poor's 500 Index rose an admirable 1.2%. Investors cheered.
The S&P, the world’s benchmark index, has returned just over 9% year-to-date. That’s not half bad. But how much money are you really making if your portfolio “beats the market?” Unfortunately, beating the S&P has become like a golfing handicap, a number that gets bandied about, and maybe embellished a point or two, to impress any financial "mind" polite enough to listen. The reason is simple… For most, investing has become a game…a competition…a proverbial fight to the finish that separates the winners from the losers. *************Flash Alert************* On July 19, telecom behemoth Sprint-Nextel and wireless Web phenom Clearwire inked a letter of intent to join forces and handed one overlooked Internet service provider 78 million Web users on a silver platter. And it’s not a big company… Yet… Find out what this $4 company is and how this “Mad Genius” found it. But you only have until midnight on Monday, November 5 to get all the details — and a complimentary $500 to start buying your shares… *********************************** But why does the S&P serve as the lone benchmark? When the annualized returns (in local currency) of the most world’s 23 most developed markets are stacked up against one another, beating the S&P looks about as impressive as the Pittsburgh Steelers beating the Pittsburgh Panthers: 
When you break down the three- and five-year returns of the 23 most established world markets, the results are even more intriguing: 

Again, I ask: How much money are you really making if your portfolio “beats” the market? For better or for worse, the markets are global today… Even the companies representing the Standard & Poor’s 500 Index now derive 49% of revenue from foreign markets, up from 30% in 2001. Meaning, a vote for the S&P also means a vote for globalization. So if the next time your broker assures you he can beat the S&P, you may want to listen. It shouldn’t be that hard. The trick: Buy just about any other developed market index but the S&P. Until Next Time, Christopher Hancock P.S.: That’s just what I provide my Free Market Investor readers — opportunities for profits in growing markets all over the world. My readers are currently up on every single recommendation, including one that is holding at 116% higher than when it was recommended. I found another play that you’ll be able to retire on. Check it out here… Editor’s Note: We have a special opportunity that just can’t wait… One of your Sleuth editors has found something that will revolutionize “Rural America.” No one has seen a technological change like this since the railroads were built. You only have until Monday night to get in on this. We’ll even get you started with $500 you can use to buy shares of this company… But please… Check it out, NOW… |