These days, the rage is all about passive investing. That’s because over the last few decades, it’s become crystal clear that active management (aka. stock picking) doesn’t work. Even the most astute stock pickers, with millions of dollars’ worth of research at their fingertips, consistently underperform basic index funds.
Model Investing Articles
Tune in to the stock market on any given day, and you’ll likely find the major averages zooming in one direction or the other. Sometimes the moves are choppy, rising and falling while generally heading nowhere, while other times the market can seemingly run for weeks or months in one direction.
If you’re one of the roughly 75% of investors who are using a target-date fund in your retirement plan, you need to read this. We’ve written about why you should say no to target-date funds before, but new research provides the clearest evidence yet for why these funds must be avoided.
Here at Model Investing, we’re constantly trying to innovate to ensure that we deliver the best performance possible for our clients. Over the past couple of years, we’ve been working to refine and enhance our suite of Investment Models, and today we’re proud to announce the upcoming release of new versions of each of our models.
In a previous article, we took a look at the business cycle to understand how the natural ebb and flow of our economy impacts things like asset prices, wages and interest rates. In this article, we'll dive deeper into what exactly causes those dreaded periods we call recessions.