“But for a universe of individual investors (and rather distressingly, probably some institutional investors, too), the message of empowerment is anything but. It’s a nudge into terrible portfolios, terrible costs and terrible outcomes. But hey, at least they got religion and implemented those terrible, far-too-actively-traded portfolios with ETFs!”
“If you want to do such a crazy thing, it certainly makes it easy to do.”
“Should the markets begin to reverse, however, investor goals will turn to capital preservation and limiting losses.”
“In addition, we hear things like… I don’t want to leave a footprint across the day for some High Frequency sniffing algo.”
“…which have morphed into a type of Black Hole. Money goes in and stocks never come out (as least for now).”
“Just because concerns about market complacency this year proved to be wrong, it does not mean that they are not justified today, particularly as markets are even more bullish.”
Show of hands: who’s surprised?
“When I see a passive manager making fun of a fundamental investor, I am perplexed. The passive manager’s very existence relies on fundamental investors keeping markets efficient.”
“…to all the Bitcoin fans and crypto-crazies out there, I’ve got good news: I’m siding with you on this one.”
“Are they active or passive?”
I’ll say one thing for them: they’ve got a lot of balls.
So you know, feel free to throw some shade towards that assessment if that’s how you’re feelin’, but…
“The share of stock that might trade on fundamental views has dropped to 77% for S&P500 average stock from 95%” in the space of just 10 years.
“I can’t do it. I can’t embrace the machines and the vol selling and the ETF parade and the central bankers’ “communication policy”. So I’m NOT happy. I don’t sleep well. I DON’T trust the Fed, much less love them, and I never will.”
“The dumbest guy in high school just bought a boat.”