Adviser: Get Out of Index Investing

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Ah yes, the active fund manager slash market timers mantra.. "this time its different".

None, I repeat, none of the talking heads know where all of this is going to end up. The best way to ride out the current madness is to make sure your assets are allocated to a combination of investment categories that are appropriate for your risk tolerance and your time horizon, and then diversify your holdings within those categories as broadly as possible. For the vast majority of individual investors, that means index funds and ETF's.

Trying to buy into the next hot corner of the market is speculation at best, and most of the time its just gambling.

DG of KY 1:08AM September 23, 2008

Its tough to beat the indexes, most experts don't. One suggestion is to factor in global equities. But always track performance to know where you stand.

Picking stocks is less important than picking sectors. Like market timing, weighing sectors is where most people need help. Paying experts is fine as long as the mean performance, not the average beats the global stock indexes.

of PA 11:23PM September 05, 2008

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