FYI: You hear it a lot nowadays. Some active manager is struggling and claims the rewiring of the stock market by passive investors has made everything too expensive. There’s nothing left to buy, he says, and nowhere to hide should things turn south.
But blaming exchange-traded funds for the situation seems a little iffy, going by new research from Leuthold Weeden Capital Management. The reason: a nearly identical alignment of extreme valuations existed in American equities two decades ago, when index investing was still in its relative infancy.
Regards,
Ted
http://www.fa-mag.com/news/maybe-etfs-aren-t-the-reason-you-can-t-find-any-stocks-to-buy-33641.html?print
