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How much passive investing is too much?
Warnings that index funds have broken the stock market all imply a threshold: a share of the market at which price discovery fails. Nobody making the argument names it. Owen Lamont, writing in the Financial Analysts Journal, argues that no such number exists short of complete passive ownership, and that what actually determines whether prices stay informative is who is left doing the trading. His case, the strongest peer-reviewed research against it, and what the performance
Robin Powell
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New study shows 20 years of failure for active managers
By LARRY SWEDROE Nobel Prize winner Eugene Fama is considered the father of the efficient market hypothesis (EMH), which asserts that...
Robin Powell
Sep 13, 20224 min read
Even with index funds, look beyond the expense ratio
By LARRY SWEDROE The persistently poor performance of actively managed funds has led investors to shift capital away from actively...
Robin Powell
Sep 8, 20224 min read
Identifying winning funds ex ante: Is it possible?
By LARRY SWEDROE While there’s no longer any debate that active management underperforms in aggregate, the majority of active funds...
Robin Powell
Sep 6, 20223 min read
The impact of uncertainty on investor behaviour
By LARRY SWEDROE While there is always uncertainty in the outlook for the economy and financial markets, a confluence of events has...
Robin Powell
Sep 1, 20226 min read
Bad times are good times to talk about money and happiness
In their forthcoming book How To Fund The Life You Want , Robin Powell and Jonathan Hollow focus on happiness and purpose as the drivers...
Robin Powell
Aug 31, 20224 min read
The impact of ESG uncertainty on asset prices
By LARRY SWEDROE While environmental, social and governance (ESG) objectives are increasingly becoming a primary focus in asset...
Robin Powell
Aug 30, 20226 min read
The active manager who stopped believing
By ROBIN POWELL It takes courage and integrity to admit that something you’ve believed in for more than 30 years, and that you’ve built...
Robin Powell
Aug 26, 20222 min read
Understanding risk, Part 2: Liquidity
By PATRICK CAIRNS In Part 1 of this two-part series, we looked at inflation . This time Patrick we another major type of risk —...
Robin Powell
Aug 24, 20224 min read
How have hedged mutual funds performed since the GFC?
By LARRY SWEDROE Hedged mutual funds (HMFs), or long/short funds, are the fund industry’s answer to illiquid hedge fund strategies. The...
Robin Powell
Aug 23, 20226 min read
Does the small-cap effect really exist?
By JOACHIM KLEMENT I have been going on about the existence or non-existence of systematic risks factors like value or momentum for so...
Robin Powell
Aug 22, 20224 min read
Three things that stop us talking about money worries
Money worries are one of the biggest causes of stress in our lives, and they affect people of all ages and income levels. The best way to...
Robin Powell
Aug 19, 20224 min read
Actively managed UCITs are effectively priced to fail, study shows
Robin writes: There’s nothing wrong with active fund management in principle; the problem is, it’s just too expensive, as Larry Swedroe's...
Robin Powell
Aug 18, 20224 min read
Investor sentiment and mutual fund stock picking
By LARRY SWEDROE Research, beginning with the 2006 study Investor Sentiment and the Cross-Section of Stock Returns by Malcolm Baker and...
Robin Powell
Aug 16, 20225 min read
Do any investors benefit from active management in the long run?
By ROBIN POWELL I spoke at a conference recently and referred in my presentation to a study on active fund performance. It sounds a bit...
Robin Powell
Aug 15, 20224 min read
Meir Statman: My advice to young people on risk
By ROBIN POWELL Cryptocurrencies crashed spectacularly earlier this year, but prices are slowly creeping up again. And, according to the...
Robin Powell
Aug 12, 20222 min read
The relationship between the risk-free rate and equity risk premium
By LARRY SWEDROE The two holy grails for believers in active portfolio management are the ability to identify in advance the few active...
Robin Powell
Aug 11, 20226 min read
Price efficiency unaffected by growth of indexing, new study suggests
By ALEX MOFFATT There’s a great deal of debate about the impact of index investing on the overall efficiency of the market. If huge...
Robin Powell
Aug 8, 20223 min read
The role of concentration in fund performance
By LARRY SWEDROE In theory, a manager with skill has more dollars allocated to their best ideas — the returns of portfolios consisting of...
Robin Powell
Aug 5, 20224 min read
How defensive factor indices mitigate short-term declines
By CRAIG LAZZARA We all know that in the long run, the U.S. stock market has performed very well, compounding at well over 10% per year...
Robin Powell
Aug 4, 20222 min read
Who buys cryptocurrencies?
Since their introduction in 2008, cryptocurrency markets have experienced both multiple, massive bull markets and devastating drawdowns, per
Robin Powell
Aug 2, 20225 min read
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