The evidence-based record shows that picking stocks is futile for most.

Larry Swedroe’s column in CBS Moneywatch is worth reading. Recently, he stated:

“For the period 1983-2008, the Russell 3000 (which represents about 98 percent of the investable market) returned almost 10 percent a year, producing a total return of 1,074 percent! During this period, about 40 percent of stocks had a negative return and about 20 percent of stocks lost nearly all of their value. Sixty-four percent of all the stocks underperformed the Russell 3000. Clearly a small number of stocks are responsible for a majority of the gains — about 10 percent of stocks recorded huge wins in excess of 500 percent.”

Focused on writing little and saying much, the Monday Morning program would state:

“Most stocks will cost most investors money, most of the time.”

Ergo, the program recommends investing in the entire market for the long term via an exchange-traded index fund.

Yesterday, the Dow Jones Industrial Index, one measure of the market, closed at 32,627.97. In November 1972, it closed above 1,000 for the first time.

That is what 10% compound annual growth rate does in 48 years!

And how does the Monday Morning program equal these results?