How lucky is your Advisor

[VanWinkle]

This is the scorecard from SPIVA the 15 years ending in 2018 for Active managers over indexes. Your chances are not that great to choose a winner, and the Advisor has the same problem.

https://www.ifa.com/articles/despit...active_funds_fail_dent_indexing_lead_-_works/

Makes you think about expenses to try and beat the "market".

VW

 

[donheff]

The gravamen:

"By the end of 2018, some 92.09% of active large-cap core stock fund managers over the past 15 years had underperformed the S&P 500. In addition, this was the ninth straight year that a majority of actively run funds in such a congested U.S. funds marketplace had lost to their respective blue-chip index, according to the latest SPIVA research. (Large-cap growth managers did even worse over that period -- 94.59% trailed their respective S&P index through Dec. 31, 2018.)"

So, it's a crap shoot as to whether you can beat the index for a year and becomes less likely thereafter and nigh on impossible long term to pick the winners out of that dwindling pool.

 

[big-papa]

The gravamen:

"By the end of 2018, some 92.09% of active large-cap core stock fund managers over the past 15 years had underperformed the S&P 500. In addition, this was the ninth straight year that a majority of actively run funds in such a congested U.S. funds marketplace had lost to their respective blue-chip index, according to the latest SPIVA research. (Large-cap growth managers did even worse over that period -- 94.59% trailed their respective S&P index through Dec. 31, 2018.)"

So, it's a crap shoot as to whether you can beat the index for a year and becomes less likely thereafter and nigh on impossible long term to pick the winners out of that dwindling pool.

Exactly - what pushed me over the edge to index funds was the realization that even if a fund manager is good (and not just lucky), he or she is just like the rest of us. They have bad days, they get divorced, they change jobs, they retire, and they die. And us investors have no heads up when any of those things are immanent.

 

[Red Badger]

I drank the index kool aid a few years before retiring. While working, TDF were the closest thing to an index, so that's where I went. Now, my complex IRA consists of 3 index funds. Somebody please wake me when nothing happens.

 

[Nick12]

I am a buy/hold monthly regardless of share price. Index funds for me. Don't need to rely on advisors and their higher fees. When the sky is falling, I buy more.

 

[kgtest]

I am a buy/hold monthly regardless of share price. Index funds for me. Don't need to rely on advisors and their higher fees. When the sky is falling, I buy more.

+1 Some people don't recognize a 10% discount buy if the market smacked them in the face..because they don't pay attention during accumulation.


Have a friend who is a SmallBiz owner and he told me the other day he is done with buying the whole market for "pidly 9 to 10% gains" now he is holding one stock.



That risk appetite does not fit my profile, but clearly he has money to blow lol.