To those who have made it to the conclusion of this series, I salute you. We’ve covered a lot of ground in the last eight posts, but hopefully now you’ve reached the end you have a more evidence-based opinion on why it’s unlikely that passive investing causes bubbles. I appreciate there’s been a lot of …
A summary: Is passive investing causing a bubble? Read More »
This is the eighth part in a series examining the evidence behind the claim that passive investing is causing a bubble. For the previous part, which asks the question, “Where are all the outperforming active managers?”, click here. — “Every morning in Africa, a gazelle wakes up, it knows it must outrun the fastest lion …
Why passive investing is increasing market efficiency Read More »
This is the seventh part in a series examining the evidence behind the claim that passive investing is causing a bubble. For the previous part, on whether passive investing is causing large stocks to get even larger, click here. — If passives were distorting prices, if dispersion was reducing, and if equity concentration was increasing, …
Where are all the outperforming active managers? Read More »
This is the sixth part in a series examining the evidence behind the claim that passive investing is causing a bubble. For the previous part, on whether passive investing is making the market more concentrated, click here. — Looking at the behaviour of the largest stocks in the world can offer us some interesting insights …
This is the fifth part in a series examining the evidence behind the claim that passive investing is causing a bubble. For the previous part, on whether passive investing causes market crashes click here. — “Last year was a particularly narrow year for the stock market.” If you’ve ever read a market commentary from your …
Is passive investing making the market more concentrated? Read More »
This is the fourth part in a series examining the evidence behind the claim that passive investing is causing a bubble. For the previous part, on whether passive investing is setting prices, click here. — Let’s assume for a moment that there is a relationship between indexing and market crashes. Indexing, for whatever reasons, increases …
This is the third part in a series examining the evidence behind the claim that passive investing is causing a bubble. For the previous part, on how much of the market is passively invested, click here. — In the previous section we looked at whether enough of the market was invested in passives to cause …
This is the second part in a series examining the evidence behind the claim that passive investing is causing a bubble. For the first part, on Sharpe’ Arithmetic of Active Management, click here. — For any investment strategy to distort the market, it must be big. Very big. And, despite all the clamour around the …
Is passive investing really worse than Marxism? Is it creating a ‘frightening risk for markets’? Or are the concerns around passive investing nothing more than trumped-up fearmongering? This series begins by examining one of the most fear-inducing (and therefore one of the most persuasive) claims thrown at passive investing – that the rise of passive …
Following on from my last article on ‘The best investing books for beginners’, which proved to be a popular post, I’ve compiled a list of my favourite investing blogs below. Eventually my intention is to collate all my favourite resources (books, blogs, and podcasts) into one place, so this post makes a start at collecting …
