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Is Passive Investment Actively Hurting the Economy? Point/Counterpoint
FYI: If you have so much as tiptoed into the arena of personal finance over the past few decades, you will have heard about the virtues of passive investing. The argument goes like this: the stock market will outperform other investments over the long term, yet no individual is in a position to outsmart the market as a whole. So the best way to reap the rewards of investing in stocks with minimal risk is to put your money in a fund that tracks the performance of some broad, indexed measure of the market, such as the S. & P. 500. Regards, Ted http://www.newyorker.com/business/currency/is-passive-investment-actively-hurting-the-economy?mbid=rss
Boy, Roche oddly avoids real substantive grappling with the studies cited in the NYer article, skimming or overlooking by my read. Lindzon seems more substantial.
Comments
http://howardlindzon.com/peak-passive-investing-the-rise-of-robinhood-and-trade-gen/
And a Roche clarification:
http://www.pragcap.com/passive-investing-i-doth-protest-too-much/