MUTUAL FUND MADNESS….The Economist writes about the dismal performance of actively managed mutual funds this week:

Between 1984 and 2002, the return on Standard & Poor’s 500 index was 12.9% a year, according to DALBAR, a mutual-fund research firm. Over the same period the average equity mutual fund returned 9.6% a year, calculates John Bogle, the founder of Vanguard, a low-cost mutual-fund company; but the individual investor in equity mutual funds got an annual return of only 2.7%, because of switching. To give an idea of what those numbers mean, $10,000 invested in the S&P 500 in 1984-2002 would have grown to $89,000, but the average mutual-fund investor’s $10,000 would have grown to just $16,200.

Now then, what was that you were saying about privatizing Social Security….?