Review Detail

It's hard to argue with Rick's statistics. I manage passive models with annual rebalancing, but I use active funds. I've had the same fund line-up for years and my passive/active models beat my passive/passive index versions both in and out of sample (real-time and back tested.) I've tried to get the damn indexes to beat my active managers, but it just ain't workin'. It would be easier to drink the cool aid and switch over. Maybe if I broke my allocations down to the 1/1000th of a percent I could curve-fit the indexes to match or beat my live strategies.

In fairness, I expect that when we get back to a secular bull market the indexes will catch up.