NEW YORK TIMES COLUMN: …According to a recent study by the research firm Dalbar, typical equity mutual fund returns over the last 20 years were about half (4.25 percent) of market gains (8.2 percent)…
Fortunately, Mr. Fama’s work on efficient markets did a favor for the small investor: it spawned low-cost index funds that replicate market averages.
That’s where the nonexpert should park his money. Of course, decisions have to be made about how much cash to hold and whether to own some bonds… (more)
