The recent news that Pimco’s Mohamed El-Erian is leaving the firm is yet another reminder that active money management comes with its own set of particular risks—risks that are easily dispatched with index funds. As The Telegraph observed earlier this month: “While the jury is out on what prompted Mr El-Erian’s sudden exit, one thing is certain: the world’s largest bond fund has just lost one of its most influential and formidable investors.”
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