Gary: I thought I heard Brinker's comment about holding certain
managed mutual funds "out of habit," as well. You raise interest-
ing points. Stock market historians will doubtless refer to this
cycle in market history as the golden age of "index investing"
what with the immense popularity of Spyders, Diamonds, index
funds, and the like. As Brinker might say, "It's a no-brainer."
Every era seems to have its darlings. In the 1960's, we had the
"Nifty Fifty" no-brainer strategy. However, the market from 1966
to 1982, to which Brinker alluded today, disappointed even the most
Panglossian of investors, Nifty Fifty types or no, by staying com-
fortably below DJIA 1000 for most, if not all, of that time period.
With a market reverting to the historical mean, which modus/i
occupandi would large segments of the investorate choose? |
