Eugene Fama, the living legend of Modern Portfolio theory, hits on some key points that every investor should know at recent IMCA conference.
- Avoid active managers and their high fees
- Avoid any strategy that self-reports performance (e.g. Hedge Funds)
- The market appropriately prices assets - concentrate on what you can control, Costs and Taxes
- Federal Reserve Tapering is a non-issue for the long-term investor