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1.
Stock markets move randomly
and are priced based on all known information at all times.
(EM) |
2.
Only new and unknowable information moves all the
global markets. Therefore, actively managed funds have lower
returns than comparable index funds.( the
math, 1,
2,
3) |
3.
Higher expected returns are only available from higher risk
investments. Investors are "paid" for withstanding volatility.
(1)
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a.
There is no free lunch. (TANSTAAFL) |
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b.
No gain without pain. |
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c.
Volatility
is the currency of returns. |
4. Capitalism is the best
place for capital. |
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