With the release yesterday of Vanguard's funds performance relative to peers showing the pure dominance of passive over active management over whatever time frame you want to look at, I am going to put a marker in the ground, and as a good contrarian, say that marks the pinnacle of passive over active for this cycle.
I have no idea how long active vs passive relative performance cycles last, but if something can't go on forever, then it probably won't.
The irony of course is that I am launching a passive index based advisory practice just as active is likely to see a turnaround in its fortunes.
The other giveaway to the "peak passive" theory is the increasing crescendo of headlines touting the fact.
Oh well, back to basics. The principles of investing are simple. The act of investing is hard.
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