Ep. 1199: Rock Your Mind with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Advantages of Indexes
The more expensive a stock is, the bigger the weight it gets into your portfolio. That doesn't make sense at all," he says. There are lots of problems with indexes and they cost less than active managers. If you take the index funds out of the market, what's left is the active managers. And guess what? Collectively they own the same portfolio. So collectively they have to have the same results,. minus trading costs, minus fees, which means that collectively they perform worse.
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