ExFlyBoy5
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
https://seekingalpha.com/article/4191148-passive-index-investing-bubble-bound-burst
Author discusses the fallacy of index funds. Note...just an opinion of one person, but he makes some interesting points.
Summary
In the last decade, trillions of dollars have flown into assets irrespective of both fundamentals and price.
Investors are euphoric about passive indexing, and it is becoming an overcrowded trade with low prospective returns over the next 5-10 years.
Because of changes in index construction mechanics, historical index returns are misleading.
Informed investors seeking a margin of safety should hunt for stocks that have been largely ignored and excluded by passive index/ETF products, especially those with high insider ownership.
Over the past decade, trillions of dollars have flown out of actively managed equity funds and into passive investment vehicles, most popularly in the form of mutual funds and ETFs that track specific indexes....
Author discusses the fallacy of index funds. Note...just an opinion of one person, but he makes some interesting points.
Summary
In the last decade, trillions of dollars have flown into assets irrespective of both fundamentals and price.
Investors are euphoric about passive indexing, and it is becoming an overcrowded trade with low prospective returns over the next 5-10 years.
Because of changes in index construction mechanics, historical index returns are misleading.
Informed investors seeking a margin of safety should hunt for stocks that have been largely ignored and excluded by passive index/ETF products, especially those with high insider ownership.
Over the past decade, trillions of dollars have flown out of actively managed equity funds and into passive investment vehicles, most popularly in the form of mutual funds and ETFs that track specific indexes....