There is a post on Get Rich Slowly that asks “Are Index Funds the Best Investment?”?
I agree with the commentors that the “best” investments are a function of the individual trader or investor’s objectives and risk tolerances.
 As I understand it, if (and only if) an individual believes the in the Efficient Market Hypothesis, then market cap weighted index funds are the natural choice.
 Since we’re all human, and we’re all different though, we may feel a varying need to actively outsmart the market or to hire managers to try to outsmart it for us.

The first step to success is to begin investing.  We should never let discussions about the “best” way to do something keep us from doing anything at all.

Readers of my site might already know that I am essentially a trend follower, and I do not believe that the market’s movements are random.  I don’t suppose I can prove it, but
while the academics are proving that I can’t “beat the market”, I’ll be here buying high and selling higher.