People believe in their financial advisors. Most of them say that the fund managers are better understanding the market conditions and they will play safe when necessary. All wrong. Why?
- It is almost impossible to time the market.
- The more they buy and sell, the more commissions we pay and the more we suffer from the buy-sell spread.
- On top of the above, we have to pay a high fee to the fund.
In case you have any doubt, check this link.
Again, as we have been saying lately, the easiest solution for a retail investor is the use of ETFs to have exposure to the stock or bond market.
