"3 Reasons Index Investors Deserve Perdition (or Not)"

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"3 Reasons Index Investors Deserve Perdition (or Not)"

Post by gkaplan » Fri Aug 11, 2017 5:44 pm

Do the arguments that indexers are hurting the market hold water? . . . .
The latest from John Rekenthaler

http://news.morningstar.com/articlenet/ ... ?id=821370

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Re: "3 Reasons Index Investors Deserve Perdition (or Not)"

Post by nedsaid » Sat Aug 12, 2017 12:20 pm

The arguments against index funds do not hold water. For one thing, there is a lot of money in hedge funds. You have the shareholder activists, the arbitrageurs, the leveraged buy-out guys, the flash traders, and more recently the factor investors. Every nook and cranny of the market has been searched for market inefficiencies and now we have the aid of fast computers and great software to do it. Trading volume also continues to go up. Bid/ask spreads are down. Commissions are way down. Markets just are becoming more and more efficient. You can see why many investors are throwing in the towel and are going passive with their investments.
A fool and his money are good for business.

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Re: "3 Reasons Index Investors Deserve Perdition (or Not)"

Post by JoMoney » Sat Aug 12, 2017 12:49 pm

Hah.. :D
"Verdict: Not guilty. If indexers are to burn, this will not be the sin that sparks the blaze."
Thank's for posting.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

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Re: "3 Reasons Index Investors Deserve Perdition (or Not)"

Post by FIREchief » Sat Aug 12, 2017 4:44 pm

He lost me at "recently they have been joined by some academic researchers." I'm not sure if I'm in the majority or minority here, but the very term "academic researcher" raises my level of skepticism. If academic research occurs in a true science, sure, I'll defer to their expertise. Investing ain't science.... :annoyed
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

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