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Around the Internet => Antimustachian Wall of Shame and Comedy => Topic started by: dude on November 30, 2015, 11:33:04 AM

Title: 2016 Won't be an All You Can Eat Market
Post by: dude on November 30, 2015, 11:33:04 AM
The gist is that index investing isn't going to make you any money next year, so you need a fund manager who can find the right sectors for you where there will be money to be made (basically):

http://finance.yahoo.com/news/2016-wont-eat-market-fund-133627826.html#
Title: Re: 2016 Won't be an All You Can Eat Market
Post by: lthenderson on November 30, 2015, 11:46:51 AM
Quote from: dude on November 30, 2015, 11:33:04 AM
The gist is that index investing isn't going to make you any money next year, so you need a fund manager who can find the right sectors for you where there will be money to be made (basically):

http://finance.yahoo.com/news/2016-wont-eat-market-fund-133627826.html#

I'm sure all the fund managers would be happy to take your money for fees to fund their Ferraris and such. Not only would they have to find the right sector, but they have to beat the market by those same percentage fees in order for you to break even with stock index funds. They have to beat the market by margins greater than their fees in order for you to make money by doing so. The chances of them doing that are very slim indeed if you have ever seen the studies published in the Bogleheads Guide to Investing.

I highlighted the word will in your comment above. That is a big assumption. The linked article used the phrase "can still prevail" which is less certain than 'will.'
Title: Re: 2016 Won't be an All You Can Eat Market
Post by: nobodyspecial on November 30, 2015, 11:58:49 AM
The obvious solution is a money manager that will guarantee to pay the index out of their own pocket and will take a fee on anything they make over that.
Shouldn't all the experts be willing to take a client on this basis?
Title: Re: 2016 Won't be an All You Can Eat Market
Post by: MgoSam on November 30, 2015, 12:38:27 PM
With this headline I thought the OP was going to bring up an article indicating that food prices would be higher in 2016 and this somehow would mean that all buffets will either close or have to raise their prices.

Man, this shows where my mind is at this afternoon.
Title: Re: 2016 Won't be an All You Can Eat Market
Post by: runningthroughFIRE on November 30, 2015, 01:08:54 PM
Quote from: MgoSam on November 30, 2015, 12:38:27 PM
With this headline I thought the OP was going to bring up an article indicating that food prices would be higher in 2016 and this somehow would mean that all buffets will either close or have to raise their prices.

Man, this shows where my mind is at this afternoon.
I thought the same thing.  I need to start packing bigger lunches.