The Evidence-Based Investor

No sales agenda. No marketing spin. Just the evidence.

Indexers have no more reason to fear a correction than anyone else

Posted by Robin Powell on August 16, 2018

I sometimes wonder whether it’s a deliberate ploy by the active fund industry to keep trotting out the same old myths about passive investing so many times that we eventually just assume they’re true. A case in point is the notion that passive investors will be worse hit than active investors by a stock market […]

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Why I use index funds — Oxford economist Bent Flyvbjerg

Posted by Robin Powell on August 13, 2018

A big problem for many investors is their overconfidence. They have unrealistic expectations about their own abilities at picking stocks and timing the market, and about the results they’re likely to achieve. Bent Flyvbjerg is a professor at the Saïd Business School, University of Oxford. An economic geographer, he’s an expert on behavioural economics and […]

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What does the advent of free funds mean for asset management?

Posted by Robin Powell on August 9, 2018

It almost sounds too good to be good true, but Fidelity has become the first asset manager in the world to offer zero-fee funds. There’s one fund that tracks the US stock market and another that track global markets. Investors who buy the funds directly from Fidelity will genuinely pay nothing, and that includes transaction […]

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Why it’s even harder for active investors to stay the course

Posted by Robin Powell on August 7, 2018

Those fund house marketers aren’t stupid. They know how to push just the right buttons at just the right time. And here’s a classic, and currently common, example: “Markets are at or near all-time highs. We’re due a correction, perhaps even a crash, before very long. What you need now is a money manager with […]

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