From Bargaineering:

Let's begin by agreeing:

• a) Passive investing beats active investing – for all but the few talented traders who consistently outperform the markets. Let's also agree that none of us is a member of that elite group.

• b) The rules: allocate assets, diversify, buy and hold, don't panic by selling into market declines etc. These are the most commonly used methods to minimize investment risk. They are constantly repeated by journalists, bloggers, brokers, financial planners and financial advisors.

Should most of us follow this advice with confidence? Do we save a portion of each paycheck, invest passively, and confidently accept whatever happens?

I vote 'no.'

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