The managers running the biggest active funds picked stocks that beat the market in 2025 — and most still lagged their benchmark. A Morningstar do-nothing experiment and a body of academic research explain why active funds underperform even when the picking is good: skilled buying undone by poor selling, the hidden cost of trading, and the incentives that keep managers churning. The UK evidence points the same way.
Most investors vastly overestimate financial bubble frequency, but Yale research spanning three centuries reveals they occur in under 0.5% of market periods. Here's why crash fears damage wealth more than crashes themselves and what history teaches about staying invested during market booms.
Robin Powell
Sep 16, 202510 min read
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