Friday's column discussed how financial advice has evolved dramatically over the past 40 years. That was scarcely the era's only investment revolution. Since 1975, index funds have grown from infancy to leading the mutual fund sales charts, and defined-contribution plans have largely supplanted traditional pension plans. Major changes indeed.
But not all that glitters is gold. The investment world, as with other fields, has its illusions--trends that appear, disappear, and reappear in altered form, giving the impression that they are new inventions, when instead they are merely manifestations of long-standing patterns.
John Rekenthaler has a position in the following securities mentioned above: VTI. Find out about Morningstar's editorial policies.