Burton Malkiel on efficient markets and China
Monday 10 May 2010
Burton Malkiel, professor of economics at Princeton University and author of A Random Walk Down Wall St on how data continues to show markets to be efficient, even though many have disputed his theory.
Passive approaches, therefore, will almost always be a better choice than active management. For best returns, investors should choose a broad based global index that is slightly overweight on China.
Take a look at Burton Malkiel at the FT being interviewed.
We cannot embed this video,so click on the link to visit the FT interview.
One simple but lovely point in the interview. He states that over 5 years 2/3rds of actively managed funds (oh by the way, so many investors still do not really appreciate what this means even though they are investing this way) and 1/3 win. That means investors should seek out the 1/3rd. That would seem common sense. But the 1/3 that win in one period don’t win in the second period! So how on earth can you choose a fund or manager that will win year after year after year….
Of course, let me know if you find one, because I have not found any yet!!
posted by Murray Round Wealth Management @ 14:39,
The Authors
Nicholas Round
Nic is the Managing Director of Murray Round Wealth Management Limited, who seeks to ensure the advice provided is truly independent. Based in Shropshire with clients local, national and worldwide, Nic has strived to find the best possible service for his clients needs, by researching and studying the market, trends and philosophies. Nic strongly believes Asset Class Management will bring his clients Financial Freedom, Independence and Happiness.
Kirsty
Kirsty is our communication guru. Managing information requires considerable due diligence and her passion for organisation gives the clarity we all seek. From Shropshire, with a Psychology Degree and much travelling, she is now back in Shrewsbury...and London often, keeping us all at Murray Round focused.
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