Post #98 - Look at the Recent Numbers! (Bad Advice)

Post #98

Part 4:  Good Advice, Bad Advice, and News About Investment People (continued)

Here is a good article that offers statistical proof that managed funds have not been doing well in the bear market:

Active Managers and Bear Markets: Don’t Believe the Hype

Thank you Mr. McDevitt for putting some hard facts out on the table to help prove the things I said in Post 84.

Mr. McDevitt also credits the following Vanguard study in his article.  Pages 9 through 13 are the important ones to read.

Download VIPSS09 (pdf)

This study carries much more weight because it looks at a much longer period of time. That’s the key.  A long period of time.  Always look at performance over a five or ten year period.  Preferably ten.  Never less than five.

Here’s an article that drives home my point:

Short-Term Performance Is for Losers - Kiplinger.com

I’m not belittling Mr. McDevitt’s effort.  I’m just reminding you that when it comes to the stock market, short term numbers can be very misleading.