A fiduciary who only looks at the most recent reporting period stands to make an unfortunate – and potentially damaging – investment decision… and unnecessarily exposes himself and his company to a liability that can otherwise be easily avoided.
Tag "Snapshot-In-Time Anomaly"
Worse, those held accountable for the potential damage of the flaw are not these detached organizations, but the professionals implicitly promoting the festering error – regular people ranging from bank trustees hired to guard the interests of beneficiaries to retirement plan sponsors and trustees responsible for protecting their employees.
401k ascending, Fiduciary delayed but debated, and the perils of performance.
With the decline of Modern Portfolio Theory as the default operative model, sophisticated investors seek the Holy Grail – the theoretical basis for determining when active will beat passive and when passive will be active. Has it now been found?
Awful returns suggest investors should have shunned equities during the century’s first decade. Or do they? A closer examination reveals a surprising conclusion, one that might upset the fastest growing segment of the financial industry.
Want to know when Active Beats Passive? A Journal of Investing study may just have the answer.
The active investing vs. passive investing argument has become passé. Perhaps we may be nearing a new consensus where it’s no longer active OR passive, but active AND passive.
FiduciaryNews.com Trending Topics for ERISA Plan Sponsors: Week Ending 11/16/18
Two opposing forces, what does “fiduciary” really mean, and, speaking of conflicts-of-interest.