Blog Entries - December 2014

Why People Invest Using Underperforming Strategies

Posted on: December 3, 2014 10:00 am
Tags: Investment performance, Academic evidence, Portfolio mri, High fees

Why it’s Rational for Investors to Rely on Active Investment Management Despite a History of Underperformance.

A quick refresher:

Active Management focuses on profiting by the buying and selling of mispriced investments. The goal is to beat the market with the same or lower level of risk.

Passive Management acknowledges most managers fail to beat the market with the same or lower level of risk. The goal here is to replicate the markets in whole or part through the use of index funds.

For me, this article by 

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