The Past Four Months Prove It: Passive Indexing Is Pure Portfolio Poison

Index investing was sold, hard, to investors - to the tune of $58 billion a month - as a safe, hassle-free way to ride stocks all the way to the moon. Led by the High Priest of Indexing, John Bogle, and endorsed by Warren Buffett and other legendary investors, indexing was supposed to be the answer to all our investing goals. "Buy a low-cost index, sit back, and let the magic happen." But trade wars... U.S. President Donald Trump's vendetta against Amazon... North Korea... Iran... Italy... rising interest rates... and more have all helped propel huge swings, and I suspect 2% daily swings were not what most new index investors were looking for when they made their initial investment. It's not just volatile periods that present problems for index investors, either. It's a bad idea all the time - and here's why... Tags: trading strategies To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2018 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post The Past Four Months Prove It: Passive Indexing Is Pure Portfolio Poison appeared first on Money Morning - We Make Investing Profitable .