Why You Should Avoid Carnivore Style “Investing” You should avoid “carnivore”‑style stock investing because it’s essentially high‑turnover, short‑term stock picking with marketing‑driven promises, which conflicts with evidence‑based, long‑term investing. What “carnivore” investing is It’s usually a subscription alert service that tells you what to buy and sell, often multiple times per day. The focus is short‑term momentum trades, including concentrated positions and sometimes margin/shorting, not broad long‑term ownership of businesses. Marketing often highlights huge historical outperformance and “veteran Wall Street traders” using proprietary methods, with limited transparent, verifiable track records. Key reasons to avoid it High turnover and costs : Frequent trading means spreads, commissions (where applicable), and tax drag in taxable accounts, all of which compound against you over time. Concentration ...
Do the recent five-year returns from market index funds vary widely? They can vary, but not as wildly as it might seem from headlines—most broad, low‑cost market index funds with similar mandates cluster fairly tightly over five‑year periods, with bigger gaps only when the underlying exposures differ meaningfully. When returns are similar Among funds that track the same index (e.g., multiple S&P 500 index funds), five‑year differences are usually small, often within roughly 0.2–1% per year, driven mainly by expense ratios, tracking error, and tiny implementation differences. Over a full five‑year span that might add up to a couple of percentage points in cumulative performance, but not tens of percentage points. When returns diverge more Five‑year returns do spread out once you compare funds tracking different parts of the market: U.S. large‑cap vs U.S. small‑cap. U.S. vs developed ex‑U.S. vs emerging markets. Equity vs bond index funds....