> No, but it's basically the average. > > Doug We have a disagreement: they are pretty smart in my view!
Most of them know what they are doing quite well. It is us who give our money to their management who are basically the average. Because I know this money management business reasonably well, I manage my own money myself, and do not let a dime to be managed by any money manager, but how many of the average people do that? Forget about that, how many of the average people can read and understand the unintelligible prospectuses their money managers send and require them read and understand. These prospectuses are not written to be understood in the first place, nor those who write them really understand what the heck they are writing that well. But, this does not refute the fact that they are pretty smart. Most of them know what they are doing, although some of them may have some miss-perceptions about what they are doing. For example, why is it that the majority in the US believes that stocks always do better than bonds in the long run, given that we know what the long run means? I don't think most money managers believe that, but they are pushing for stocks, mostly because they can collect higher fees from stock portfolios than bond portfolios. Like, why is it that most 401K allocations are 70/30 or, at best, 60/40 stocks versus bonds, irrespective of the so-called risk-tolerance of the so-called "investors"? Who is average and who is smart here? Best, Sabri PS: I am 100% in the US Treasury bonds. Well, not quite! Because I have a some money in an anti-dollar account too and over the past two years my return in that anti-dollar account is way better than 30%. How many hedge funds brought that much in the past two years? _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
