Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Jaffe: Investors Are Smarter Than We Think Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, July 23, 2012

Jaffe: Investors Are Smarter Than We Think

News summary by MFWire's editors

Columnist Chuck Jaffe believes that investors are smarter than critics think. Jaffe writes that there is ample proof that the concern about investors hurting themselves with some innovations, "is not true and never has been."

He lists daily account pricing in retirement plans and development of mutual-fund "supermarkets" such as those run by Charles Schwab and Fidelity Investments as innovations which were said to harmful for investors.

Another innovation that is said to be harmful is the evolution of ETFs.

Yet, Jaffe reports that a study by Vanguard Group titled "ETFs: For the better or bettor", showed that investors are not destroying their portfolios with reckless ETFs trading.

Joel Dickson, one of the authors and a Vanguard's Investment Strategy Group principal, emphasizes that the presumption about ETF trading does not reflect individual investors.

Dickson said: "Generally, investors tend to be consistent animals over time. While the tools may develop and evolve, ultimately the actions that are observed are not the worst behaviors made possible by the new products and services. People may assume the worst of investors, but its not how it actually happens.

Geoff Bobroff of Bobroff Consulting also gets a quote in the article:

"The knee-jerk reaction to almost all of the advances we have seen has been 'Oh my goodness, what is going to happen to the industry?' and 'Investors will blow themselves up with this.' Surprise, surprise, the world hasn't come to an end yet and, in fact, the fund world has gotten better for each of these developments."

 

Edited by: HFD


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2020: Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use