STEPHEN CRANSTON: Don’t follow the herd
Inappropriate risk-seeking behaviour often drives bad outcomes and nasty surprises
Until the coronavirus crisis there seemed to be a relentless move into passive funds. And there is no doubt that the low cost of these funds makes a huge difference to the amount of capital accumulated for retirement.
But there is nowhere to hide when markets come down, like the US Dow Jones industrial index, which shed 23.2% in the first quarter of 2020.