I think the issue isn’t whether the market is efficient, but whether index funds outperform the vast majority of money managers - which is definitely the case.Grantham’s own performance vs the stock market has been pretty mediocre, as far as I can tell.

I think the issue isn’t whether the market is efficient, but whether index funds outperform the vast majority of money managers - which is definitely the case.Grantham’s own performance vs the stock market has been pretty mediocre, as far as I can tell.

Thanks for clarifying, Ice.  I was referring more to the typical retail client who allows their emotions to get in the way of making good investing decisions.  So, even though it wasn't directly related to the institutional definition of behavioral science, I'm assuming a lot of the same principles can be applied to the retail space.  Hence, active vs. passive is a fruitless conversation.   Not really of course, but I think many people in our profession spend waaaaaaaaay too much time on allocations, manager selection, etc. 

[quote=iceco1d]

I knew what you meant, and I agree.  If you can’t get a client to stay put in the plan/strategy/etc. that you lay out for them, the rest of this is just noise. 

Won't really matter that much for clients that sold out of Dow @ 7,000, and are now sitting in CDs @ 2% until they decide to buy back in @ Dow 13,000...BRILLIANT!!

and when the DOW does get back to 13000, can I get a year on that,  most of your clients will be breaking even.