The Thinking Investor
Monday, June 02, 2008
This phenomenon of chasing returns produces an apparent paradox. Investors do not earn, as a group, the same returns as are reported by the very mutual funds in which they invest and by the market indices. If a market index, such as the S&P 500, produces a given amount of return over some period of time, the entire collection of people that actually invest in the market never earn as high an amount, even after adjusting for fees. How can this be so? I can give you a simple example that explains the paradox.
posted at 05:44:48 PM | permalink
Tuesday, April 22, 2008
Nonetheless, I would consider the year-over-year inflation figure of 4.0% to be pretty reliable. The commentary accompanying that figure (from Wall Street, mostly) is largely focused on the fact that most of the 4.0% is attributable to only two categories: food and energy.
posted at 04:28:33 PM | permalink