When people are responding to a question, their brains are completely engaged.
The next time your broker recommends an actively managed mutual fund, show him or her these studies and ask this question: What makes you believe you have greater expertise than these sophisticated pension and endowment plans?
It makes absolutely no sense to entrust your savings to anyone who won’t agree, in writing, to fully disclose all conflicts of interest and to always place your interest above both theirs and their firm’s.
When I used to give longer presentations, I noted high engagement at the beginning of my talk, which tapered after 10 minutes or so and continued to decline.
The road to reaching your retirement goals is paved with low management fee index funds.
On February 17, 2017, the Dow Jones Industrial Average closed at 20,624. It is up 4.36 percent for so far in 2017. In 2016, when adjusted for dividend reinvestment, the DJIA returned 16.47 percent. Given these extraordinary gains, it’s not surprising that investors are nervous about a bubble that might soon burst.