I'm not going to waste much time on this subject. Suffice it to say that, if you have half a brain, you've already figured this one out. If not, let me make it perfectly clear to you. There is not a shred of reliable evidence to support the idea that active management (stock picking, market timing, etc) adds any value whatsoever. In fact, there is a lot of very well researched evidence to the contrary.
End of story. Cramer loses again. Mom and pop may not know it because no one on CNBC has the balls to say it (almost all of their advertising revenue comes from perpetuating the myth), but the professionals do.
So, if the professionals know this, why do the vast majority of them still attempt to convince their clients and/or their prospective clients that active management works? Read on.
No comments:
Post a Comment