re: Actively Managed vs. Index Funds

It depends. I think I would tend to agree with matthew25 for most bearish periods. Now for a ridiculous market going into a storm like '29 or '99, that's another story. I know managers sell themselves with the marketing line that they will protect you in down times (hence the "hedge" term), the reality is often different, and I would argue that active management tends to make more sense in a market with a lot of fat prices sloshing around.