“It’s not that there isn’t anybody that can do it, but it is virtually impossible to find the one who’s going to beat the market,” Malkiel added on Bloomberg.
Instead, Malkiel suggests investors should buy the haystack or go with index-based funds.
Moreover, Malkiel advises investors to diversify. Specifically, he points out that investors should add exposure to previously underperforming areas, like the emerging markets, Japan and Europe, to capture potential growth opportunities, instead of relying on continued outperformance in the U.S.
“By diversifying, you will reduce risk, and over the long-haul you will do quite well,” Malkiel said.
For more information on index-based ETFs, visit our indexing category.
Max Chen contributed to this article.