[DWarrior]

The stock market is not a zero-sum game, that's apparent. Clearly the market has not stayed at the same level all these years, it has grown. However, if you consider people who beat the market average to be the "winners", and people who do not to be the "losers", then someone who made 9% in a 10% market will be considered to have lost.

As for fund managers, they have to gear their investments towards positive monthly performance. This means they cannot simply wait on a security for two years. Many experts say this is an edge that the individuals have over the fund managers, nobody is forcing them to perform well every month. Since the individuals don't have the time or the information that the managers have, it is futile for the individuals to immitate managers by short-term trading, so yes, most people are better off with indicies as a large portion of their portfolio.