Today we’re talking about a topic that I think is going to be very interesting to most of you. Almost everybody that I’ve met or talked to has mutual funds or ETFs now or has had them.

I think they’ve thought that it’s the best way to invest, to be diversified. I kind of call it the diversification pixie dust. They think, “I have all these funds so I’m diversified,” but there’s a lot of inefficiencies with them.

On the flip side, bond funds. As much as there are inefficiencies in the mutual fund market, the bond funds are probably even more inefficient.

The bond market is very inefficient, especially versus the equity market or the stock market. And the reason for that is because there are just so many different issuances of different bonds that are out there.