Here is what we know about active management:
When will investors (and many financial advisors) learn the potential perils of chasing returns?
Take a look at the chart below showing flows into bond funds from 2009 through 2012. Billions of dollars poured in, year after year.
Equity and Bond Flows 2004 – 2013
Meanwhile, despite five-in-a-row positive years for U.S. equity markets, investors fled stocks until the bond market turned sour in 2013, with a 15.1% decline in 30-Year U.S. Treasuries.