“Nobody likes to be average.”
That idea is reinforcing “one of the big lies from Wall Street” as retail investors turn to platforms such as Robinhood to try their hands at stock-picking, Larry Swedroe, chief research officer at Buckingham Wealth Partners and co-author of “The Incredible Shrinking Alpha,” told CNBC’s “ETF Edge” on Monday.
The rush of retail traders to the stock market during this year’s volatility has romanticized stock-picking in a potentially dangerous way, said Swedroe, whose latest book is just out in its second edition.
“That’s what Wall Street tells you — we could do better than average — which of course is possible to do,” Swedroe said. “But the fact is that’s one of the big lies from Wall Street.”
“We know that if you just passively invest