About the book and author:

The financial services industry has a dark secret, one that costs global investors about $2.5 trillion per year (about 10% of the $25 trillion global equity market.) This secret quietly drains the investment portfolios and retirement accounts of almost every investor. In 1900 French mathematician, Louis Bachelier, unsuspectingly revealed this disturbing fact to the world. Since then, hundreds of academic studies have supported Bachelier's findings. Unfortunately, investors pay little attention to academics and Nobel laureates. The dark secret is that managers don't beat markets. The fact is, markets outperform managers by a substantial margin over long periods of time. This book offers overwhelming proof of this, and shows investors how to obtain their optimal rate of return by matching their risk capacity to an appropriate risk exposure. A globally diversified portfolio of index funds is the optimal way to accomplish this. Index Funds: The 12-Step Program for Active Investors is the treatment of choice for wayward investors. Most investors continue to embrace an active investing strategy, despite the extensive academic research demonstrating its futility.Speculating on the next winning stock, fund manager, investment style or market timing are all akin to gambling. Below market returns in investment portfolios and pension accounts are the result of investors gambling with their hard earned money. This 12-Step Program will put active investors on the road to recovery. Each step is designed to bring investors closer to embracing a prudent and sound strategy of buying, holding, and rebalancing an index portfolio.