Most Active Funds Continue to Trail Index Performance

I recently finished reading Larry Swedroe's "QUest for Alpha" which provides excellent academic research evidence that indexing is the way to go for the average investor. Computerized trading, shorting stocks, large institutional investors and hedge fund managers (who can afford to do the research to even attempt exploiting the "ineffiiciencies" of the market), all work against the average investor whether or not they index or seek some form of active management. While indexing is far better than the a savings account, CDs or money market accounts--at least while interest rates are at zero--time and uber saving are the only true weapons left to the average investor.

jim smith of CA 9:44PM November 09, 2011