Thursday, September 22, 2016

40 Year Proven Advice On the Stock Market, And The Fed Keeps The Bubble Going

                                   An article in the news today concerns a professor who has advised for some 40 years that the best way to invest is in low cost index mutual funds. Buying the market over time in index funds beats the overwhelming majority of actively managed funds and most everyone and everything else. The trillion dollar financial investment industry consisting of brokers, analysts, media pundits, loud mouth television personalities, and so forth, some of whom have financially ruined people, do not want their party to end. For the person that wants a life and that has no interest in the stock market, avoid all the noise and follow the simple advice of dollar cost averaging and buying the market in low cost index mutual funds or index etfs. Unless someone has a passion for the market, and even then it does not mean you will come out ahead, the best course for many is the simplest, least expensive course.
                                     For young people, there is the luxury of time to make up for market downturns. For older people, you better pray the federal reserve and other policy makers have not created the mother of all bubbles by their reckless disregard of reality.

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