tag:blogger.com,1999:blog-5465015914589377788.post8205742408485611974..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Short Takes: Switching to Index Investing, Capital Gains on Investment Real Estate, and moreMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5465015914589377788.post-48743142354805987902015-01-17T09:11:47.018-05:002015-01-17T09:11:47.018-05:00Well, it was about thinking ahead but yes, I suppo...Well, it was about thinking ahead but yes, I suppose that could apply as well!<br /><br />Have a good weekend,<br />MarkMy Own Advisorhttp://www.myownadvisor.canoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-9964598120963028572015-01-16T11:20:24.978-05:002015-01-16T11:20:24.978-05:00@Richard: The second half of your first paragraph ...@Richard: The second half of your first paragraph gives the reason why a hypothetical fund manager who has the skill to know when small cap stocks will outperform would still likely pick individual stocks. The world expects fund managers to picks stocks and pays them well to do so.<br /><br />I suspect that some financial advisors whose niche is to offer index strategies to clients end up succumbing to clients' indirect demands to try to pick winning asset classes. Whether we get to more explicit "index fund picking" is anyone's guess. I'm guessing that genuine skill in this area will be exceedingly rare, but that wouldn't necessarily stop investors from betting on it anyway.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-37970690969643204942015-01-16T11:10:32.924-05:002015-01-16T11:10:32.924-05:00If a fund manager correctly guessed that small cap...If a fund manager correctly guessed that small cap stocks would outperform, it still seems like they could do just as well by using the correct index rather than picking stocks in that category. In the current model of financial services no one really looks at that option though so it's just a matter of whether the manager is a "good stock picker" or not.<br /><br />Given the growing popularity of indexing along with the difficulty people have in resisting the temptation to modify their portfolio, I wonder how long it is will be until we have professional "index fund pickers". They could create a fund where they simply hold a mix of ETFs with an added fee of 0.5 - 1%. I'm sure that would find a willing market. A model like that may well be less risky than many of the current mutual funds that investors hold.Richardnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-10684663041995804662015-01-16T09:14:18.940-05:002015-01-16T09:14:18.940-05:00Thanks for the mention! I like the new model port...Thanks for the mention! I like the new model portfolios as well (obviously - my two-fund solution is the Vanguard model, minus the bonds).<br /><br />Enjoy your weekend!Robb Engenhttp://www.boomerandecho.comnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-19508683673384471132015-01-16T08:25:57.309-05:002015-01-16T08:25:57.309-05:00@Potato: Sadly, the biggest issue some people have...@Potato: Sadly, the biggest issue some people have with model portfolios is that they end up with some of their money invested in asset classes that didn't perform well. I find it funny and sad when I hear people say they're index investors, but they plan to shift more into U.S. stocks (or whatever performed best the previous year).Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-87384292349388974482015-01-16T07:59:55.858-05:002015-01-16T07:59:55.858-05:00Thanks for the inclusion this week, I think if we ...Thanks for the inclusion this week, I think if we just used the Mason Jar for canning tasty treats and bank accounts are left for money hoarding, life might be a little better....Alan W. (BCM)http://www.canajunfinances.comnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-18116116240294726482015-01-16T07:51:02.239-05:002015-01-16T07:51:02.239-05:00I like the changes too -- it fixed the two most co...I like the changes too -- it fixed the two most common issues people had with the model portfolios. I think the Canonical Portfolio post must have had a big effect on Dan ;)Potatohttp://www.holypotato.netnoreply@blogger.com