Active vs. Passive

The Problems with Indexing

Everyone is always looking for the perfect investment strategy. But investing, like everything in life, is about making trade-offs. It seems like there are a near infinite number of ways to invest, but they all fall into one of two broad categories: active or passive investing. Active investing means you are trying to predict the…

Read More

Why Can’t ‘Winning’ Active Managers Keep on Winning?

If you’ve read any of my previous articles, you know I’m not a fan of active management. The numbers show that it simply doesn’t work. There are several arguments against active fund managers, but one of the most damning is that winners don’t seem to repeat. Past performance doesn’t indicate future performance – it’s not…

Read More

You Can’t Time the Markets

The appeal of market timing is obvious. Who wouldn’t want to get in and out of the market at the best time every time? We’ve talked a lot about market timing in the past – timing risk premiums, trying to time the markets on a daily basis, and the importance of staying disciplined even when it seems obvious the markets are going to go down.

Read More

Can You Time Risk Premiums?

No one really likes risk. We all can deal with it, but that doesn’t mean we want to. Yes, there are people who live to jump out of airplanes and walk on tight ropes with no net, but I’m talking about financial risk. Unfortunately, at least in investing, risk and return are tightly intertwined. If…

Read More

What Can We Learn from the Market Disasters of the 1970s?

[vc_row type=”in_container” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″][vc_column_text]The following is an excerpt from our ebook, “Investing Through the Decades,” which you can download by clicking here. Throughout history, when bad news and events touched the daily lives of investors and caused nest eggs to shrink, it’s been natural to ask, “Is this…

Read More

The Hidden High Costs of Index Funds

Here’s a simplified history of indices: early on, investors used indices to see what the market was doing and, more importantly, understand how their investment managers were doing on a risk-adjusted basis. Then, investors realized they could use indices as the basis for investment vehicles—bypassing concerns over a manager’s performance and expense. This was the basis of…

Read More