Dumping money blindly into index funds?

If you put money blinding into stock index funds, you’re helping managers steal from America’s public corporations, according to a special issue of Fortune magazine (start here and then click on the other articles under “special package”).  Could it be that the great investing lesson we learned from the last few decades, i.e., that index funds outperform managed mutual funds, will turn out to be inapplicable to the changed environment of the 21st century?

3 thoughts on “Dumping money blindly into index funds?

  1. I’m a persistent believer in dollar-cost-averaging despite executive pay and corporate scandals. Call me a midwestern pie-eyed optomist, but the US economy will correct itself, the world will continue to buzz in a spirit of trade, and low cost index funds will be a wise investment as a part of a diversified portfolio.

    We have all tasted from the sweet tree of easy worldwide communications and nothing will be the same again. This power has fundamentaly changed what we know about business and how we deal with it. Despite terrorism, scandals, SARS, and war; we will get over our FUD (fear, uncertainty, & doubt)and move on. Human beings are just that way, constantly learning how to adapt. Broad index funds will grow again and I’ll have lots of low cost shares in my portfolio.

    Our winters in Wisconsin are long and abusive. We doubt the power of spring every early March on our farm as we get hit with another snow storm or a shower of ice. It seems that as a nation, we have just come through our own “early March” and despite present circumstances, there are spring flowers just around the corner.

    May 2, 03

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