Larry Swedroe is director of research for the BAM ALLIANCE. The following was his take on what we learned last year.
Lessons for 2016
Lesson 1: Active Management Is a Loser’s Game
Lesson 2: So Much of Returns Come in Very Short and Unpredictable Bursts
Lesson 3: Events Occur That No One Predicted
Lesson 4: Ignore All Forecasts; All Crystal Balls Are Cloudy
Lesson 5: Even With A Clear Crystal Ball …
Lesson 6: Last Year’s Winners Are Just As Likely To Be This Year’s Dogs
Lesson 7: “Sell in May and Go Away” Is the Financial Equivalent of Astrology
Lesson 8: Hedge Funds Are Not Investment Vehicles, They Are Compensation Schemes
Lesson 9: Don’t Let Your Political Views Influence Your Investment Decisions
Go read the entire thing here.
Lessons from 2016