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Why Picking Stocks Can Be Hazardous to Your Financial Health

The stock market has been hitting record highs lately, and at times like that, it’s tempting to want to invest in the hot new thing. But, much like lottery tickets, while one or two individual stocks can occasionally see massive payouts, the majority of them don’t earn any money at all. In fact, a new paper finds that 58 percent of individual stocks since 1926 have failed to outperform one-month Treasury bills over their lifetimes (and that’s a yield of less than ONE percent!). Tess Downing shares a recent New York Times article that breaks down how the overall market can perform so well when so many individual stocks do not, and what that means for you the investor.