Roger Schreiner

Vanguard's Sauter: Avoid Irrational Exuberance with Alternatives

Passive investing never made sense, it never will. Only looking backwards can one tell if you SHOULD HAVE. Investing is about going forward.

The facts are: passive investing is investing without an escape plan, which means it is greatly flawed. Active investing, while offering no guarantees, certainly gives you a fighting chance.

Last year Vanguards passive equity strategy suffered market like losses. Our portfolios were up 5% to 30% and we took less risk. We have outperformed the last 1, 3, 5, and 10 year periods, again, with less risk.

Now we only manage .001% of the assets that Vanguard does, but we have investors who are still growing there assets, rather than the losing money as those who made a single bet without a safety net.

I wish Vanguard good luck, because the ONLY way they can win for therei investors is if there is a bull market.

Roger Schreiner, CEO
Schreiner Capital Management, Inc.
scminvest.com