By any measure, 2013 looks set to be another great year for stocks. In
fact, if the final three weeks go well, it could the best 12-month jaunt
for the large cap benchmark index (^GSPC, SPY) since a 31% gain in 1997.
While
those kind of profits are sure to delight most investors, the truth is
many people simply won’t get them. In fact, studies show that up 75% of
professional money managers lag their benchmarks over time simply
because they actively try to beat them. As odd as it sounds, had they
done nothing they’d probably have been better off.
“It’s not
unusual for indexes to outperform the managers consistently over time,”
says Hugh Johnson of Hugh Johnson Advisors in the attached video.
“You’re not going to find from me an argument against indexing, by both
professional or large investors, as well as small investors.” (more)
Please share this article
No comments:
Post a Comment