Comments on: Why We Invest in Actively Managed Mutual Funds

By: Rob Bennett

Rob Bennett — Tue, 14 Jul 2009 14:53:47 +0000

The diagram makes a powerfully important point.

But this point applies re more questions that just picking mutual funds. It also applies re the question of whether there is a need to lower one’s stock allocation when prices go insane. We don’t hear about the dangers of investing passively nearly as much as we would if the financial press was not dependent on advertisements from The Stock-Selling Industry to survive.

Rob

By: Mike

Mike — Tue, 14 Jul 2009 12:49:35 +0000

“if only that purple line were green…”

Haha, indeed.

By: SJ

SJ — Mon, 13 Jul 2009 17:57:58 +0000

if only that purple line were green…

By: MoneyEnergy

MoneyEnergy — Mon, 13 Jul 2009 17:42:25 +0000

Nice diagram. It also plays on the “expertise” card – which I’d argue is only justified in some cases. Eg., the average person who doesn’t know the difference between a bond and a stock – I’m amazed at some of the mutual fund ads I see around town.

By: Miranda

Miranda — Mon, 13 Jul 2009 17:10:25 +0000

Nail. On. Head.