When restless New York City hedge fund manager Robert Fairchild watches the Baltic Dry Cargo Index plunge 97%, registering an all-time high and a 25-year low within the span of just six months, he decides to buy a ship.
If stocks match the historical average return of about 7.5% for 1999 through 2019, the index would wind up twice as high and the 10-year total return from the 2009 low would average 18%!
Investing in actively-managed mutual funds that charge high fees can lower your standard of living in retirement by as much as one-third over a low-cost index fund strategy.