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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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Deep Dive: Low-volatility investing — what the latest research reveals
Welcome to Deep Dive, a new TEBI series where we take a closer look at the latest research shaping investing, cutting through complexity to show what really matters for investors. The first in the series looks at low-volatility investing. For 50 years, academics and investors argued about whether low-volatility stocks deliver superior returns. New research solves the paradox: both sides were right about different halves of the strategy. Here's what that means for your portfol
Robin Powell
Oct 1, 202511 min read
Private equity returns are broken: the case of David Lloyd
Private equity returns have collapsed as the $3.2 trillion exit crisis deepens. Why David Lloyd's sale to itself reveals an industry model that's fundamentally broken.
Robin Powell
Sep 29, 202512 min read
Is alpha worth it? Even ‘winning’ funds add little
A new study shows alpha’s value is tiny. Even rare “winning” active funds add just basis points, often less than fees. Here’s why indexing wins.
Robin Powell
Sep 26, 20256 min read
Jonathan Clements’ legacy: wisdom, generosity, and the Getting Going on Savings Initiative
Jonathan Clements, who died this week, was one of the most influential personal finance journalists of his generation. Through his columns, books, HumbleDollar, and his final act of generosity — the Getting Going on Savings Initiative — he leaves investors a lasting legacy of wisdom and generosity.
Robin Powell
Sep 24, 20255 min read
Retail access to private markets: hidden risks investors can’t ignore
Retail access to private markets has exploded in recent years. Yet new research shows these products aren’t the safe diversifiers they appear. Hidden behind the glossy brochures are smoothed returns, conditional liquidity, and fees of 4–5% a year. Worse still, the evidence suggests that wealthier investors are offered higher-quality funds, while mass-market buyers are left with weaker versions.
Robin Powell
Sep 23, 20255 min read
SPIVA persistence scorecard: why Robin Wigglesworth says the critics got it wrong
The SPIVA persistence scorecard has become a lightning rod for debate. Robin Wigglesworth shows how active managers’ critique collapses under scrutiny — and why persistence is the Achilles’ heel of their case.
Robin Powell
Sep 19, 20255 min read
Explanation-based investing: a better name than passive?
In this guest post, William Morris introduces the idea of explanation-based investing as a fresh alternative to the often-misunderstood term “passive investing.” He argues that what investors really need isn’t to be active or passive, but to understand the reasoning behind their choices. Clear explanations, grounded in evidence, can help people make better decisions and achieve stronger long-term outcomes.
Robin Powell
Sep 17, 20255 min read
The financial bubble delusion: why crash fears cost investors more than crashes themselves
Most investors vastly overestimate financial bubble frequency, but Yale research spanning three centuries reveals they occur in under 0.5% of market periods. Here's why crash fears damage wealth more than crashes themselves and what history teaches about staying invested during market booms.
Robin Powell
Sep 16, 202510 min read
Equity duration: why stock-picking got harder after 1945
A new study shows how equity duration reshaped markets after 1945, making stock-picking harder and strengthening the case for evidence-based investing.
Robin Powell
Sep 14, 20256 min read
How negativity bias sabotages your investment returns
Ever notice how financial bad news grabs your attention more than good news? There's a reason — it's called negativity bias — and it's costing investors real returns. Here's what the science says.
Robin Powell
Sep 12, 20257 min read
Index concentration: why the Mag7 'problem' strengthens the case for indexing
The S&P 500's concentration in the Magnificent Seven has critics worried about indexing risk. But Hendrik Bessembinder's research reveals why index concentration actually strengthens the case for passive investing: just 4% of stocks drive all market returns, and active managers consistently miss these winners. Historical data shows market concentration has been normal for 150 years, from railroads to tech giants.
Robin Powell
Sep 9, 20258 min read
Stablecoin risks: why ‘safe’ digital currency could trigger financial crisis
Stablecoin risks could trigger financial crisis as £280bn market lacks regulation. Nobel laureate warns of taxpayer bailouts while academic research shows instability during stress periods.
Robin Powell
Sep 8, 20259 min read
FOMO investing: why chasing market excitement destroys wealth
University research accidentally proves FOMO investing destroys wealth rather than creating it. When search interest peaks for investment terms, returns consistently disappoint.
Robin Powell
Sep 5, 20257 min read
The buffer fund mirage: why simple beats complex for downside protection
New research reveals buffer fund marketing promises don't match reality. AQR Capital Management's comprehensive study of 401 buffer funds shows these complex products consistently underperform simple stock-cash combinations whilst failing to deliver reliable downside protection. The median buffer fund charges 0.79% annually but trails reference assets by 0.07 in risk-adjusted returns, with performance worsening over time.
Robin Powell
Sep 4, 20259 min read
3 simple questions to ask a financial adviser
Three crucial questions to ask a financial adviser can save your wealth from hidden conflicts. After Vanguard's settlement exposed industry-wide problems, learn how to identify trustworthy advisers, spot red flags, and protect yourself from expensive mistakes.
Robin Powell
Sep 3, 202511 min read
Council pension fund fees: the multi-billion-pound scandal TEBI warned about for years
UK councils are under severe financial strain, with services like libraries and social care facing cutbacks. At the same time, hidden costs such as council pension fund fees are draining millions from local budgets. This article explores how austerity, rising demand, and opaque investment charges are combining to push local authorities to the brink, leaving residents to bear the impact of shrinking public services.
Robin Powell
Sep 2, 20259 min read
Why chasing yesterday’s winners is tomorrow’s wealth destroyer
Chasing yesterday’s winners may feel safe, but it’s one of the fastest ways to destroy wealth. Funds that shine in headlines often disappoint once investors pile in, leaving latecomers with losses. Morningstar’s research shows how chasing past performance turns success stories into financial traps — and why boring, low-cost investing offers the real path to long-term wealth preservation.
Robin Powell
Sep 1, 20259 min read
Born to take risk? The surprising link between birth order and risk-taking behaviour in fund managers
A new study reveals a surprising link between birth order and risk-taking behavior in fund managers, a finding that also extends to ordinary savers. Later-borns tend to be more adventurous, taking greater risks with investment portfolios, which often leads to poorer performance compared to their firstborn peers.
Robin Powell
Aug 27, 20256 min read
Does the name passive investing hold better investing back?
“Passive investing” may sound like settling for average, but the evidence shows the opposite. By avoiding hype and sticking to a disciplined process, index investors tend to outperform. Yet the label itself puts people off. Charley Ellis and behavioural research reveal how one word is shaping outcomes — and why it’s time to reframe the debate.
Robin Powell
Aug 26, 20257 min read
Private equity’s fundraising crunch: investors call time on the boom
Private equity firms are dangling incentives that would have been unthinkable a few years ago. Management fee cuts, rebates on deal charges, even caps on travel expenses are now on the table. Yet despite this generosity, fundraising has slumped to a seven-year low. According to the Financial Times, firms raised just $592bn in the 12 months to June, almost a third down from the record levels of 2021. Behind the numbers lies a shift in the balance of power between fund managers
Robin Powell
Aug 24, 20253 min read
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