The hazards of trusting experts...

[Iron]

From http://www.nytimes.com/2011/10/23/magaz ... ted=1&_r=1:

Although professionals are able to extract a considerable amount of wealth from amateurs, few stock pickers, if any, have the skill needed to beat the market consistently, year after year.

...

Mutual funds are run by highly experienced and hard-working professionals who buy and sell stocks to achieve the best possible results for their clients. Nevertheless, the evidence from more than 50 years of research is conclusive: for a large majority of fund managers, the selection of stocks is more like rolling dice than like playing poker. At least two out of every three mutual funds underperform the overall market in any given year.

...

Overconfident professionals sincerely believe they have expertise, act as experts and look like experts. You will have to struggle to remind yourself that they may be in the grip of an illusion.

Jeff

[JollyGreen]

My definition of an expert

X = unknown quantity
Spurt = A drip under pressure

[superfrank]

with the exception of my old finally salary pension (the management of which i have no control over) i wouldn't dream of trusting the investment of my cash with others.

these 'professionals' should only be allowed to take a cut if they beat the market- that would sort the wheat from the chaff.