Stockholm Syndrome is a psychological phenomena where hostages express sympathy and empathy towards their captors.
Even during bull markets, 90% of equity mutual fund managers fail to beat index averages… even as they pull in billions in fees each year.
The fact is typical mutual funds have made a lot of people in the financial industry wealthy, but shareholders get the shaft nearly every time.
Look, bottom line, the mutual fund industry is one massive Stockholm syndrome played out over millions of investors…
Mutual funds are the captors and investors are the hostages – hostages that keep rationalizing these dead-end investments, even having positive feelings for fund managers whose number one job is to steal money in fees.
It’s crazy, isn’t it?-from DR