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Tuesday, August 11, 2009

Back From Hiatus

Some interesting recent items

Paul Krugman reviews Justin Fox's must read book The Myth of the Rational Market

The book has generated a lot of debate, Here is Robert Skidelsky (author of the authoritative biography of Keynes) in the FT on how economics education should change.

The WSJ on another attempt by the fund industry to peddle expensive "hedge fund like " products.
The WSJ on bond investing. Surprisingly they conclude that the best approach to bond investing could well be....

Consider a Passive Strategy
Last year, most actively managed bond funds performed worse than bond-market benchmarks such as the Barclays Capital U.S. Aggregate Bond Index. The trouble: They had lower weightings in government bonds than the indexes did, or they were trying to boost yields through positions in complex, difficult-to-trade securities.

So, are investors better off opting for an open-end fund or exchange-traded fund that tracks an index? Indexed portfolios eliminate any possibility that a manager might bet the ranch on a risky strategy, and they offer much greater transparency. Indexed portfolios also charge relatively low management expenses, leaving more of what they earn for investors

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