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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (96286)	6/26/2002 9:25:48 AM
From: Knighty Tin	Read Replies (4) \| Respond to of 132070

BGR, Of course you should believe everything I say because I believe it. But how were you hurt? I was saying something nice. Yup, the indices story works except for the past 3 years. Or all of the late 60s to the mid 80s. And all of the 30s until the early 50s. I don't ever remember a period of over a day where the indices beat 90% of actively managed funds. But you are right that most actively managed funds are poorly managed and even the blind monkey technique of indexing beats them. It is also important to note that indices promoters are active managers themselves. The S&P panel of idjit heads trade more names than most brain dead "tax efficient" portfolios that are "actively" managed. Look at all those fortunes made indexing. Like, uh, and, uh. Look at all those great retirements made from indexing, like, uh, well, none. True, many actively managed funds have done badly in this regard, too. But at least you have a chance. No indices have done well in building fortunes or retirements. However, the mutual fund has become too much of a closet index to be anything but a straw dog for indexers. Too many silly niches and adhering to the benchmark. So, if you do not trade your funds or trade individual issues or use futures or options, you may very well be better off in the sure loser, but not always a big loser, indices. You are missing cause and effect on the trader point. I trade actively because passive mgt. doesn't work and never will. I don't believe passive mgt. sucks because I trade actively. Wharton is at the University of Pennsylvania. You know, the school that beats Brown twice a season in all varsity sports except for football, where we only get one shot at ass-whuppin'. <g>