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Politics : Ask Michael Burke

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To: Mike M2 who wrote (48035)2/20/1999 11:02:00 AM
From: BGR  Read Replies (1) of 132070
 
William,

The standing myth about active money management is that while in bull markets most active money managers lag the index funds, in a bear market they can go in cash and hence beat the index funds. Given that, the best strategy is perhaps to be fully invested in index funds in a bull market and in cash in a bear market. The assumption of course is that active money managers can stop the start and end of bull and bear markets. Unfortunately, there is absolutely no proof that this is true. Timing the market over a long period of time has been historically impossible for the average investor.

So, what is the moral of the story: for me, it is passive index fund investing.

-BGR.
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