Rebalancing: Focus on What Matters
Trimming an investment that has become “overgrown” can mean realizing gains and paying taxes. Not to be unexpected, this is part of being a successful, long-term investor.
TAG: Active vs. Passive
Indexing: How Big is too Big?
Many investors wonder if index funds’ popularity has made markets less efficient, thus improving the environment for stock-picking and market timing. While index funds have grown, the majority of dollars remain invested in actively-managed strategies.
Eugene Fama Wins Nobel Prize
In the 1960’s, Professor Eugene Fama of the University of Chicago coined the term “efficient market” to describe a world in which no investor can consistently beat the market without taking greater risk. Today, he’s a Nobel Prize-winner.
Bond Funds: Is Active Better if Rates Rise?
Many investors assume actively managed bond funds outperform bond index funds when interest rates rise. On the contrary, the majority of active funds fail to beat their benchmarks in such rate environments.
“Don’t just do something; Sit there!”
Once again, data from USA TODAY and online portfolio tracker SigFig shows active traders dramatically underperform those with a buy-and-hold approach.