A Stock Market Detached From Reality

18 February 2019 — theplanningmotivedotcom

Are Passive Funds to blame?

The capitalists always like to boast about their prowess. The fact is that only 10% of their winning decisions are based on ability. The biggest factor is economic conditions (75%). Most investors make profits when the going is good. If further proof of this was needed, look no further than indexed based funds which have now outstripped active funds (stock picking funds where ability predominates). However, these ETF’s and passive funds which appear riskless when the going is good, become ticking time bombs when stock market indexes start falling.

etfs-a-ticking-time-bomb-pdf.pdf



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