According Openfolio, an application that allows you to monitor the effectvnost investment, nearly 70% of investors have lost money this year.
In the history of American markets, it was the worst year since the financial crisis. No wonder that to make money in 2015 was not easy.
People who earn money by doing one of two things that are forbidden to do investment advisers: they either hold a lot of cash, or a lot of risk.
Cash was one of the best investments this year. Despite the fact that the cash does not bring about any benefits while in a bank or money market fund, they still had an impact on US indices, commodities and even the majority of the bonds.
But to keep a lot of cash - not a very good way of earning money in the long run.
Year of Amazon and Netflix
Another winning strategy was to make big bets on individual stocks, especially technology stocks.
Of Amazon and Netflix crush the competition in 2015. Both companies added to their capital more than 120% per year, which means that the investment of $ 10 thousand for the period January 1, will cost about $ 22 thousand. These companies are chislo10 companies whose shares are traded most frequently.
Many retail investors also made cash contributions to Disney (DIS) and Facebook (FB, Tech30). Both companies have a monetary return, worthy of applause.
Owning individual stocks adds more risk to the portfolio. This is a bet on one company against investing in a mutual fund or ETF, which includes many companies.
The general rule is that investors need to do more research if they want to buy individual stocks instead of cash funds.
Another lesson from 2015: experienced investors fared much better than the newcomers.