I had an odd experience a couple weeks ago.
I met up with some money managers and financial advisors. They were discussing the same problem: how tough it is to beat the market.
Since I focus on closed-end funds, and since I know of many CEFs that have beaten the market thanks to smart managers (I showed you 16 whose average return has crushed the S&P 500 back in November), I found this discussion puzzling. I asked them what they thought about the CEFs that have beaten the market.
The responses were pretty much the same. “It won’t continue … they were lucky … they just beat the market for a short period … index funds will ultimately outperform.”
A Cult in the Making
The trend toward passive index investing is turning into a cult.…