Most investment recommendations you see on TV or on the internet are based on some type of catalyst.
Somebody thinks you should buy or sell based on factors such as interest-rate changes, earnings, or macroeconomic conditions
The reason I like the Vanguard Total Stock Market ETF (NYSEMKT: VTI) is that it doesn’t need to worry about any of that. This exchange-traded fund (ETF) doesn’t make sector rotations or adjustments based on the most recent market event. It simply invests in the entire U.S. stock market.
Its investment case is built simply on allowing participation in the U.S. economic growth engine, not picking individual winners within it. Why total market exposure beats trying to pick winners Trying to pick winners, avoid losers, and beat the market is usually a losing effort. Studies have consistently shown that people who attempt market timing underperform the broader market over time.