Forum Archive

Ever since this Madoff thing became news, I’ve been thinking a lot about the value of “professional” money managers as I’m sure lots of you folks have too.

I’ve concluded that the whole business is a fraud, since no money manager can outperform his respective index in the long term, yet fees are charged none the less.

In my opinion, no fee index funds are the only rational means of investing in the stock market, unless you’re a gambler and want to pick individual stocks on your own for fun.

Hedge funds are probably the biggest scam of all since their managers charge the largest fees and just like mutual fund managers can’t outperform the markets, except on rare “by chance” occasions.

Is professional money management the next big business to fall?

It’s so damn easy to diversify on your own with a handful of index funds, why do folks pay more to do worse? I don’t get it.