Nobody can establish who first used the phrase 'evidence-based investing', and no regulator defines it. Robin Powell, who was given the name by Larry Swedroe in 2015 and is sometimes wrongly credited with coining it, sets out what it actually means: four tests of what counts as evidence, borrowed from a medical parallel that hit the same crisis twelve years ago. Including where he goes further than a global tracker, and why he holds that position less firmly than he used to.
If I had £1 for every time I read that index funds are too heavily concentrated in big US tech stocks I would be a very rich man. It is undeniably true. The FT recently reported that the top ten companies accounted for 37.3% of the S&P 500, which, by historical standards, is a very high proportion. Even more remarkably, just 26 stocks made up half the entire value of the index — the lowest number since at least 1980. Several market commentators have warned that rising levels
Robin Powell
Jan 17, 20255 min read
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