Dividend logo

Investors in their prime earning and saving years – from about age 45 to 60 – have a view of investing that was shaped by what they saw, heard and read many years before.

That environmental effect is much like the way the “Greatest Generation” (those who fought in World War II) were shaped by the experiences of the Depression, even though they were children at the time, and how being thrifty became part of their behavior as adults.

A Different Stock Market

Today’s prime investing age cohort grew up at a time when institutional investors were growing in importance, but individuals were still a powerful force in the stock market, and when trading volume and portfolio turnover were much more sedate than they are now.

These and other signs of how much the market has changed over the years come from a new book by veteran investor Charles Ellis, “The Index Revolution: Why Investors Should Join It Now.” The main point of Ellis’ book is that the market environment and structure have changed so much over the years that active management – the fancy term for stock picking – no longer works and that the best route for most investors is passive investing through index funds.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Market%20performance%20charts
News

The Market Wrap For January 18: A Critical Earnings Season Begins

It’s no secret that the market’s direction has all been news-driven. The news about the trade...

News

Trending: Vodafone Dividend at Risk as Challenges Mount

Dividend.com analyzes the search patterns of our visitors each week. By sharing these trends with...

Premium Value%20stocks
News

Value Stocks Are Dirt Cheap & That’s Wonderful News For Dividend Investors

Pull up any broad chart and you’ll notice one thing. That is, the markets have been focused on ‘...