Re:A Professor Who Was Right About Index Funds All Along
by pedrocr on Saturday October 22, 2016 @09:37AM
(#12768617)
The point of index funds isn't that at any moment in time no one can have a market beating strategy. The point of index funds is that by definition the bulk of the market can't have above average returns. So as a retail investor your best bet is to just find a cheap way to ride the average of the market.
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Re:A Professor Who Was Right About Index Funds All Along
by walshemj on Saturday October 22, 2016 @11:30AM
(#12769061)
True but some of my active funds correctly saw the problems with the UK banks and got out before the big losses an index fun would have had to buy those banks and taken the loss.
Re:A Professor Who Was Right About Index Funds All Along
by iends on Saturday October 22, 2016 @11:45AM
(#12769128)
The saying is "a broken clock is right twice a day." Correctly reading and responding to market conditions is not sufficient. You have to do it continually.
Re:A Professor Who Was Right About Index Funds All Along
by walshemj on Saturday October 22, 2016 @12:32PM
(#12769329)
which a lot of my Investment trusts have done for several decades
Re:A Professor Who Was Right About Index Funds All Along
by joubert on Saturday October 22, 2016 @01:02PM
(#12769457)
Care to share the love and say which investment trusts?
Re:A Professor Who Was Right About Index Funds All Along
by ikeboy on Saturday October 22, 2016 @10:00AM
(#12768695)
That's a valid point, but plenty of people do claim that "no one can have a market beating strategy". Strong EMH.
Re:A Professor Who Was Right About Index Funds All Along
by hilop on Saturday October 22, 2016 @12:10PM
(#12769229)
And yet one of the assumptions of the EMH is that there are people who beat the market (using pre-public information), which is why you can't. The EMH is just saying that 31/32 teams will not win the Super Bowl.
Unless there's a version of the EMH that doesn't believe in the speed of light.