Excluding bear markets: the rite of the thought criminal. Nice year splits!
Asked and Answered department. From the same document:
The belief that bear markets favor active management is a myth. A majority of active funds in eight of the nine domestic equity style boxes were outperformed by indices in the negative markets of 2008. The bear market of 2000 to 2002 showed similar outcomes.
Reading: it’s fundamental.
As for index funds, your trained monkey hasn’t eaten in 10 years of net negative S&P 500-indexed returns. The monkey is dead. Just because we enjoyed 30 years of average 8-12% returns doesn’t mean they’re guaranteed by god or country. Active management of capital drives a capitalist society forward – index funds are merely dumb piles of loot for the theoretical man in the business suit to the far right to squeeze when necessary.
(via tart-tart)
Do you mean these ten years?
I’m sure the monkey actually gave his life trying to protect the bonuses. At all costs and whatever the outcome.
The key, of course, is “as low as.”
Claiming that capital gains are the same thing as income is, well, no. The cop’s salary is not at risk, and predicated on the performance of very specific sub-groups of investments. But the person who put this graphic together knew that and is a thought criminal, so…
If recent events have taught us anything, it’s that fund managers’ incomes are not at risk, no matter what the performance outcomes may be. The bonuses are sacrosanct! To suggest otherwise, or tie said bonuses to some arbitrary measure of performance would be un-American.
Lemkin 