Money in American Politics
An interesting piece by Jane Mayer:
Investors Need to Reevaluate their Choice of Asset
Managers
Noah Smith notes:
“If you’re not good
at something, the smart thing to do is go find a professional. If you're sick
and don't know what you have, you go to a doctor. If the wiring in your house
has a short circuit, you call an electrician. But does this approach work in
investing?
Probably not.
Doctors and electricians have to prove their skill and training to get
certified. Money managers don’t. For almost two decades now, the average hedge
fund has delivered a lackluster return.
Actively managed mutual funds generally fail to beat the market after
fees, either in a given year or over time. Although most fund managers do have
skill, and could generally beat the market trading on their own, the fees they
charge more than cancel out their investing edge.”
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For an optimistic note on the status of the world, check out
A World to Be
Thankful For by Charles Kenny
https://www.theatlantic.com/international/archive/2016/11/thanksgiving-global/508646/