I recently wrote a guest blog entry for the Silicon Prairie blog. It’s called Passive Investing — The Great Mistake.
Juicy Excerpt: The research that brought us Passive Investing is important research. Learning that short-term timing does not work truly was a breakthrough. But if we are going to turn investing into a science (and that is what we are doing when we use research into the historical data to inform our decisions) we are going to need to adopt more than the trappings of science. Real scientists always remain open to new findings. Real scientists avoid dogma. Real scientists don’t ignore their mistakes, they learn from them.
The owner of the blog put forward a good comment.
Juicy Excerpt: it currently appears that comparing the market to investment fundamentals could give you an advantage. If more people did that then passive investing would be more reliable because the market wouldn’t be driven by its own trends as much.