Because the rise in equities over the last five years has been indiscriminate, with all stocks reacting to the same news in the same way, it has been a bad time to try to beat the market by running an active fund, and a great time to run money passively, tied to an index. Those eschewing the market altogether have had a horrible time.
It never ceases to amaze me that the financial media writes things to back up their point that simply have NO BASIS IN REALITY.
The statement is the perfect example
Because the rise in equities over the last five years has been indiscriminate, with all stocks reacting to the same news in the same way, it has been a bad time to try to beat the market by running an active fund, and a great time to run money passively, tied to an index. Those eschewing the market altogether have had a horrible time.
I recently met a new acquaintance at work who said something like, "I only gamble the responsible way, with stocks." I said, "Gambling with my life savings is too much risk for me. I prefer index funds." His response was, "Index funds are without a doubt the best way to invest, but they're just so boring to watch."