After costs, only the top 3% of managers produce a return that indicates they have sufficient skill to just cover their costs, which means that going forward, and despite extraordinary past returns, even the top performers are expected to be only as good as a low-cost passive index fund. The other 97% can be expected to do worse.
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Eugene Fama Quote
“People don't walk away from their homes unless they can't make the payments. That's an indication that we are in a recession.”
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