Enjoy your stay.
Ahhh, retail investors.
Proponents of passive investing are going to keep insisting that the epochal active-to-passive shift isn’t dangerous or otherwise prone to destabilizing markets. They’re going to take that narrative to the grave apparently.
“Unlike active investors, they cannot express their disagreement with the decisions of individual issuers by selling their holdings.”
I’m just guessing, but…
“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!”
Don’t get sucked in.
“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).”
“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.”
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.