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There is no imaginable investment that will outperform that".
The second advantage of the new system is its better ability to identify funds that will outperform the market.
"What's exciting is unleashing a real stock picker, who can find stocks that will outperform the market long term," Mr. Kinnel said.
Rics forecasts that East Anglia will see higher growth than the UK average, but also picks the north-west and West Midlands as areas that will outperform.
Even though it's statistically unlikely that we can identify a mutual fund that will outperform an index fund, that doesn't stop us from trying.
But all the systems assume, as do stock analysts on Wall Street, that superior research and analysis can select a group of stocks that will outperform the market averages over the long run.
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So let me put it this way: My approach says that it's likely that Obama will outperform the forecasts of poll-based analysts like Silver.
But money managers are often put into impossible positions by clients who want them to find stocks that will both outperform the market over the long term and keep their risk low.
If we expand shorter paths with a certain difference in performance with additional factors, the worse performing path has a greater chance of being expanded into a path that will later outperform other paths.
Traditional all-market-cap-weighted index funds guarantee that you will receive your fair share of stock market returns, and virtually assure that you will outperform, over the long term, 90% or more of the other investors in the marketplace.
"Clients in our age group know that stocks will outperform bonds," she added, noting the historical pattern.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com