Tag Archives: passive investing
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.
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
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
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
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
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