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This problem is trivially solved -- force new SEC hires to buy one or more market index funds and put them in a blind trust for the duration of their employment
by lutusp 13y ago
This problem is trivially solved -- force new SEC hires to buy one or more market index funds and put them in a blind trust for the duration of their employment.
Historically, market index funds do as well as active portfolios (on average), unless brokerage commissions and tax implications are included in the assessment, in which case they do better (a fact proven by the now-famous WSJ dartboard contest). So SEC employees would have a more profitable portfolio than usual for the duration of their employment, and they would avoid even the appearance of impropriety.
How is it that this obvious solution hasn't been put in practice?