BLOG

Eugene Fama is one of several Nobel Prize-winning economists whose research undermines the case for using actively managed funds This is the second article in our 12-part series on Mark Hebner's Index Funds: The 12-Step Recovery Program for Active Investors. If you missed the first instalment on the addictive nature of active investing, catch up before continuing. In traditional recovery programs, the second step involves acknowledging a higher power. For investors trapped i

Active investing feels productive. Buying. Selling. Chasing hot tips. As investors, we think we need to be doing something. But it can easily become compulsive — an addiction that’s fed by financial professionals who profit from keeping us hooked. In his award-winning book, Index Funds: The 12-Step Recovery Program for Active Investors, my IFA colleague Mark Hebner explains why active trading is so tempting — and so destructive. He also sets out a rational alternative to acti

JONATHAN CLEMENTS is one of the best-known names in financial journalism. After starting his career writing glowing profiles of star fund managers, he began to see a pattern: most of them failed to deliver over the long run. Raised and educated in England, Clements moved to the United States after graduating from Cambridge University. His early years at Forbes magazine left him sceptical about active management. Even when a fund manager looked like a sure bet, the success rar