You gotta love low prices. Look at what Amazon has done to retail with my Bezos Law. Look at what Vanguard has done to lower investment fees, a revolution known as the “Vanguard effect.”
The Vanguard Effect drove down prices on index funds, making them much more affordable than actively managed funds.
With interest rates set by the Federal Reserve so low, and stock prices climbing with seemingly no end, index funds have been racing higher in price.
The high valuations on index funds could leave investors and their families in trouble after a bear market correction.
Low fee investments have appeal, but you don’t want to let the tail wag the dog when your family’s financial survival is on the line.