Perspectives from the Path
When Luck Runs Out - The Success Rate of Active Management
The success rate for active managers has not been very good. In fact, it has been downright awful. It is really hard to beat an index. If you or your advisor are pursuing traditional active management, you’ll need to depend on some serious luck. The decisions you or your financial advisor make around the types of managers and investment strategies you invest in can make a big difference in your long-term returns.
Unreliable Stars and Past Performance
“Star-rating” or similar ranking systems have been popularized by Morningstar and Lipper. Should you use these when selecting a fund?
Why Should I Invest Globally?
“Since US stocks are doing so well, why should anyone hold international stocks?” Here are at least six reasons to keep a global focus when investing.
Top 10 Good/Bad Things in 2018
We tend to get focused on one side of the coin or the other, yet few things are that clear. Investing takes time, perspective, and patience. Each year, there are good things and bad things, still, the world doesn’t end. Here are the top 10 good/bad things of 2018.
Are You Getting Queasy with These Markets?
With the recent market swells, I imagine many of you are feeling some queasiness. It’s important to keep a long-term focus as you invest.
Gambling on Active Management? The Odds are Against You.
It is really hard to beat an index. If you or your adviser are pursuing traditional active management, the odds are stacked against you winning. Passive management has been growing in recent years for this reason.
We Are Our Own Worst Enemies: The High Cost of Emotional Decision Making
Many of us fall victim to behavioral biases and emotional-decision making. But the evidence says that ETFs and index funds are more efficient than high-cost, actively managed funds.
Investors Wasted Half a Trillion Dollars Trying to Beat the Market
According to our rough analysis, over the past decade, mutual fund investors wasted about half a trillion dollars on unrewarded active management expenses.
Book Review: The Incredible Shrinking Alpha
Active management is a loser’s game, which will only get tougher to win going forward. Swedroe and Berkin dive into the de4creasing pool of available alpha in their book, “The Incredible Shrinking Alpha.” Read our review.