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Category Archives: Active Versus Passive Investing


Trusting Yourself With Buy and Hold Investing

Jason Zweig of the Wall Street Journal recently wrote an article ‘Will We Ever Again Trust Wall Street?’ that brilliantly steers one to consider employing a buy and hold investment strategy over an actively managed portfolio.  “Buying and holding a diversified stock portfolio still makes sense. Paradoxically, as fewer people cling to their faith in [...]

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Asset Allocation vs. Tactical Allocation – Know the Difference

Asset Allocation is being mistaken form tactical allocation. “It’s the financial fantasy for a post-crash world: Wouldn’t life be grand if you could own one mutual fund that invested in domestic and foreign stocks, bonds, cash, real estate, commodities and currencies, freely shifting investments among categories to take advantage of opportunities, and avoid meltdowns?” Well, [...]

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Active Investing by Money Managers Loses in Risk Study

Sam Mamudi of the Wall Street Journal deservingly poked money managers in the eye with his recent report on how such mangers underperformed indexes in both real and risk adjusted returns as revealed by a rigorous Morningstar study on the subject. As Mamundi states, “While it has been established that most actively managed mutual funds [...]

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If You Are An Index Investor, Where Does Explore Investing Fit In?

In this week’s Forbes column, Rick Ferri asserts that “partial indexing works for Wall Street, not investors”. In this penetrating article, Rick ruthlessly uncovers Wall Street’s agenda is selling indexing for efficient markets while directing clients towards highly priced actively managed mutual funds for “inefficient markets”. As Ferry states, “Welcome to ‘Core and Explore’, also [...]

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Tracking 9 ETF Portfolios – Surprise Winners and Losers So Far in 2008

The famous professors at Yale have proven that asset allocation accounts for 90% of a portfolio’s return and that stock picking and market timing account for less than 10%.   So what a great time to look at how different asset allocations are faring in this market! In 2008 it turns out that asset allocation decisions have [...]

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