Good article: The Big Idea – Indexing Works
…according to Vanguard: In four out of seven bear markets since January 1973, the Dow Jones U.S. Total Stock Market Index beat the average actively managed fund. The two bears in which many funds did better than the index were both in the 1980s.
This graphic included in the article doesn’t do much for the active management side of the argument (the graphic is slightly confusing because it doesn’t make clear that the bars represent the percentage of active managers that beat the Dow Jones U.S. Total Stock Market Index. You may click on the graphic to see a larger version):
This is all stuff we already knew but it’s interesting to read about it in a financial planning magazine.