The fact is markets do go down, and often times stay down. If one owned the Nasdaq index in the year 2000 at 5000, they are still down over 60% 9 years later.

The Japanese Nikkei index is still down OVER 80% 20 years later.

There is no guarantee that markets rise over time. If it were that easy, we would all be stock market millionaires, but statistically few are.

INDEX INVESTING DOES NOT ADDRESS THE SINGLE MOST IMPORTANT ASPECT OF MONEY MANAGEMENT – RISK MANAGEMENT.

Before you scoff at the facts, do some research, google or wiki, on Bruce Kovner, John Paulson, Michael Marcus, John Henry (Owner of the Boston Red Sox), Monroe Trout, William Dunn, George Soros – all of them “market timers”, and “stock pickers” – and all with net worths in the hundreds of millions and billions – literally.

It is a nice sales pitch to tell people that market timing doesn’t work, just keep putting money blindly into the financial markets with no risk management strategy.

The financial markets are serious business, and the fact is that the uninformed majority’s losses pave the golden road for the few who truly understand that markets do not always “go up”.

The fallacy of “buy and hold” index investing has been exposed as ridiculous as the day trading tow truck driver commercials of the late 90′s. What exactky is the plan of the index investing crowd for declining markets??

If one owned the Nasdaq index in the year 2000 at 5000, they are still down over 60% 9 years later.

The Japanese Nikkei index is still down OVER 80% 20 years later. Fact…so does index investing really work, or is it just a clever way to “sell” index funds.

Index investing is the King of all financial “sales-pitches” that mislead the uninformed majority…Index investing only works in bull markets, period…A superior investment strategy provides absolute returns, in all market conditions.

Index investing does not tell investors what to do when markets decline…”OK, sit tight, or buy more!” Are you serious. “Just hold on the markets always come back”…do they?

10 years later the S & P is down over 20%

The author has an angle to pitch, which has built Vanguard into a mutual fund giant, which is great for Vanguard, but how have their customers actually done?

Index investing is a great “sales-pitch” – don’t let high priced brokers, etc. take your money, when the index fund company can take your money instead.

With the S & P index fund down over 1, 3, 5, and 10 year periods have the fund companies refunded the fees they charged investors to manage the funds? Absolutely not.

As a champion of the investor, why should the author’s company make money if their investors are losing money.

It is comforting for the unsuspecting investing public to believe that index investing is a “better, nobler” way, but the numbers do not lie.

Market timing absolutley works, active management absolutley works, but then folks would have to admit that it isn’t as easy as this author would make you think it is to make money investing.

This author would have people believe that markets are efficient and that buying assets on the way down is a wise investment choice…How is any investment with negative returns for the rolling 1, 3, 5, 10 year period a good investment? It isn’t

Index investing is a bill of goods sold to the unsuspecting public…

If “stock-picking” and “market-timing” don’t work explain that to hedge fund managers who shorted the indexes to gains last year, and are profitable again this year in a rising market…

To truly participate profitably in the markets one needs to understand how to profit in rising and decling markets…

Let’s not confuse brains with a bull market..Let’s see the stats for index investing over the last 10 years, not very inclined to sell alot of index funds…

Bottom line, if market timing doesn’t work, ask where index investors would be if they sold 2 years ago, and more importantly didn’t buy all the way down…

Not a very popular stance, but the facts are the facts – the author is right about one things – financial firms all have a sales pitch to get your money, including the author’s company – they are all cut from the same cloth, some arrive in different packaging though.

BUYER BEWARE…

Rating: 1 / 5

Definitivamente te lo recomiendo, metaforicamente hablando es del tipo de libros que te explican que la comida chatarra es basura y que lo que importa son las ensaldas, el atun, las proteinas etc. a fin de cuentas sabes que tienen razon, pero y que pasa con esos sitios secretos del comer delicioso que has encontrado durante un largo andar por la vida?

La leccion es: renuncia a todo eso, come bien y viviras muchos años mas.

Compralo no te arrepentiras !!!
Rating: 4 / 5