If economists were so terribly wrong in predicting the worst recession since the Great Depression, why should you pay attention to musings about what’s likely in store for investors next year or at any time in the future?
I’m amazed at the contortions investors go through in a misguided effort to “beat the market” when saving for retirement.
The financial media loves to create panic and anxiety by focusing on the aggregate wealth that is “wiped out” when the market drops. It’s hogwash.
Here’s some valuable advice to maximize returns. Other than rebalancing every year or so (which is not necessary if you own a target date retirement fund, because those funds automatically rebalance), ignore your account statements.
Anyone who knows the data understands actively managed funds are simply a scheme to transfer your wealth into the pocket of fund families that don’t have the expertise to “beat the market.”
Harry Markowitz is a real expert – and that’s an understatement. He holds a Ph.D in economics from the University of Chicago. His list of publications in prestigious journals is extensive. In 1990 he shared The Nobel Prize in Economics for his work on portfolio theory.