Tag Archives: passive investing

Are Six Months Responsible For All Gains in Stocks Since 2000?

Six months are not responsible for all gains in stock market since 2000. This conclusion in some articles was based on the wrong choice of returns. The correct number is about 32.

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Do Nothing Fund Management: Another Distortion That Will Disappear

Another distortion, courtesy of the low interest rate policy of the Fed, that is now way overextended and serves political goals is the “do nothing fund management.” Market timers are being replaced by accountants because fund management boards think the … Continue reading

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The Transition From Strategic To Tactical Asset Allocation

Most investors avoid forecasting (timing) methods because of the theoretical and practical difficulties that are associated with the transition from strategic to tactical asset allocation. If a transition is decided, assigning the task to a registered adviser with experience in … Continue reading

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The “Lazy Investor” Revenge

Central bank policies have allowed a revenge of the “lazy investor” after a loss of confidence due to the crash of 2008. Many active strategies that invest in stock index tracking products underperform buy and hold after 2009 but this … Continue reading

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Personal Beliefs Masquerading as Forecasts

Fund managers and other finance professionals that make forecasts, especially at the beginning of a calendar year, in reality express personal beliefs. Their models, if they have any, are based on descriptive statistics that can say little about the next … Continue reading

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When Speculators Believe They Are Value Investors

One of the worst side effects of the V-bottom fueled market of 2014 is that many stock market speculators now believe that they are value investors and this disillusioned group includes passive index trackers who have either not learned from … Continue reading

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