Is alpha good or bad?

It's a common question among investors and traders alike: is alpha good or bad? Alpha, essentially, represents the excess return that an investment or trading strategy generates compared to a benchmark or index. So, from that perspective, it would seem that alpha is inherently good, as it indicates that you're outperforming the market. However, the answer to the question isn't quite so straightforward. For one thing, generating alpha can be incredibly difficult and requires a high level of skill and expertise. Many investors and traders spend years, if not decades, trying to develop strategies that can consistently produce alpha, only to find that they're unable to do so. Furthermore, even if you are able to generate alpha, there's no guarantee that it will persist over time. Markets are constantly evolving, and what works today may not work tomorrow. This means that you'll need to constantly adapt and refine your strategies in order to maintain your edge. So, in the end, whether alpha is good or bad really depends on your perspective and goals. If you're an investor looking to beat the market, then generating alpha is clearly a good thing. But if you're more interested in stability and predictability, then relying on alpha may not be the best approach.