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2009: [Part 1] Beating the Market: 4 Ways to Outperform Index Funds by Steven Keys

Optimal Finance Daily - Financial Independence and Money Advice

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The Best Strategies to Beat Broad Index Funds

If you're willing to take extra risk, you can give yourself a chance at beating broad index funds. Lower risk investments are bid up to higher prices, which tends to depress their future returns. Higher risk investments may be less expensive to day, which provides more room for potential growth in the future. Historical data shows that smaller companies often beat the market by a little bit over the long run with more volatility and risk along the way. Using leverage just means taking out a loan and buying investments with the proceeds. Leverage multiplies investment returns in both directions.

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