Quote:
Originally Posted by macker
You got me like eightball....The costs to acquire ETF's are dirt cheap....you won't find any crack for $9.99. Who says you need to trade them? I have a few that I bought years ago that are based on long ideas that I don't think I will sell within the next 10 years. 10 years of MER's at 2.5% and up is significant. If the average investor would read this guy http://en.wikipedia.org/wiki/William_J._Bernstein they would see how easy it is and how boring and un-emotional investing can be. ETF's are as boring (transparent) as it gets! 60-40 for most people and forget about it...the costs of acquiring ETF's are not an issue and that is why people are flocking to them....ETF's have become favorites of hedge fund managers to day traders who like to pull the trigger frequently but this doesn't have to be the case and ETF's are the cheapest way to outperform the ponzies. It takes the Goldmans etc. right out of the picture. Look at billions that Lehman had guaranteed in funds (100% principal protected) that evaporated and investors were left with nothing. The SEC will take care of Goldman and Jake Zamansky, Lehman
http://www.seclaw.com/docs/LehmanPri...Litigation.htm
Even here in Canada, Manulife got into big trouble because they forgot to hedge and the stock price has been reflecting that. As much as MER's are a factor people also need to make sure the financial instituion they are investing in knows what they are doing and they aren't going to default on them. If you can't DIY then ETF's are the lowest risk way to be diversified in the market imo. The average MER of the average ETF is 12 times lower then the average MER of the average mutual fund in Canada today. 12 X. There was a "couch potato" in this thread and im sure he sleeps well at night. Use a process and avoid chasing product. |
I guess at this point we are so far from the original topic we might as well continue with the age-old argument about passive and active investing.
So, sure $10 for a buy is a good price. How many people make one purchase for their whole retirement account though? What brokerage would survive if that was the case for the majority of investors? A lot of places are charging you inactivity fees if you don't make enough trades for them in a quarter as it is....so saying that someone is going to spend a mere $10 and solve all of their problems is just intellectually dishonest- you know that is not accurate.
Frankly I feel like I'm arguing with a guy who doesn't believe his own arguments though. You were in the stock thread last year telling everyone how they should be looking at companies like AGU, CPG, ECA, SU. At one point you even suggest that you would buy only one stock: BHP! But saving the best for last in this post was the part when you talked about how you valued these companies: Vector Vest!!
So which is it macker? On one hand you are stock-picking and actively trading, and now its passive investing ftw? Surely you aren't a guy who thinks that no professional managers can beat the market, but you can...right?
(To be fair it was that thread where we had this run in, perhaps for the first time. One day you'll just join the dark side though!)