Category Expenses

Dan Ariely on “Asking the right and wrong questions”

Dan Ariely, author and professor of behavioral economics, wrote an interesting blog post yesterday  Asking the right and wrong questions  From a behavioral economics point of view, the field of financial  advice is quite strange and not very useful. For the most part,  professional financial services rely on clients answers to two  questions:    How much of […]

Felix Salmon responds to Swensen’s anti-mutual-fund piece

Felix Salmon, a widely published financial journalist, responds to Swensen’s article about how much of the mutual fund industry is ripping off investors.  In particular, he takes issue with Swensen’s suggestion that the SEC should be somehow pushing folks to buy index funds. http://blogs.reuters.com/felix-salmon/2011/08/19/why-the-sec-shouldnt-push-index-funds/ Salmon grudgingly seems to agree that *within an asset class* it […]

Mutual Funds a ripoff?

Maybe that’s pushing it a little bit, but the fact is that the vast majority of mutual funds, mostly actively managed, add more in costs than they do in value.  A net loss to the investor compared to what he should be paying. David Swenson, chief investment officer at Yale University (he manages their huge […]