Two Key Stock Performance Drivers (And One ‘Quite Depressing’ Chart)

Let's say you want to explain stock returns and performance. What factors matter? You could make a very long list, but if you ask Goldman's Scott Rubner, all you really need to consult are passive flows and index construction, which is a roundabout way of broaching a familiar subject: Extreme concentration and the extent to which the ongoing active-to-passive shift helps perpetuate a self-fulfilling prophecy whereby a handful of mega-caps gather ever more heft. "If you allocate $1 of your newl