FYI: To win in poker or markets, look for easy games, advises skill-versus-luck guru Michael Mauboussin. Be the best player at the table and take advantage of less-skilled participants.
For investors, bond markets are the easier game, according to his new paper. In it, he considered why actively managed bond funds have outperformed passive strategies and, as a result, haven’t been hit as hard as active stock pickers by low-cost index funds. U.S. active bond managers reaped $900 billion in net inflows over the last decade, even as their equity counterparts lost $1.1 trillion.
Regards,
Ted
https://www.institutionalinvestor.com/article/b1f3fl3bchwfcl/Is-Active-Bond-Investing-Just-Easier
