Question

In: Finance

Thanks to the Internet and sites like Google Finance, almost too much information is available for...

Thanks to the Internet and sites like Google Finance, almost too much information is available for the average investor to digest. Is it possible for the average investors to absorb all of this information or should they simply seek out professionals to plan their stock portfolios?

Solutions

Expert Solution

These informations which are available on various websites are generally informations which have been related to the past performance of the companies and investor is not able to make decisions based upon the past performance of the company in order to make a rate of return in the future performance of the company unless he is professionally equipped and he has a deep knowledge of the stock market and performance of the company.

Generally professionals are expert persons and they have high level of exposure into the overall assessment of performance of different companies so they are able to proactively decide in different stocks to invest and they also need to maintain their risk management in order to provide their investor with a high rate of return.

So it can be said that even though there is a wide database of information on different websites, these informations are mostly backward looking and unless the investor is highly equipped and have proper risk management strategies, he should always be having professional to manage with his stock portfolio


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