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Josh Brown: The Real Bubble Has Always Been In Active Management

TedTed
in Fund Discussions
FYI: Michael Burry joins the chorus of people referring to indexing and passive investing as a bubble. It’s not his main point – which is that value small caps are being ignored, which is true – but it’s a point we now hear tossed off on a daily basis as casually and nonchalantly as though the speaker were simply saying that water is wet or LeBron James is good at basketball.

Most of the people referring to passive investing as a bubble have not accurately described the way in which it represents a bubble. What they’re really saying is that it is popular. So is shopping online and using Instagram and eating Mexican food. These things aren’t “bubbles.”
Regards,
Ted
https://thereformedbroker.com/2019/08/29/the-real-bubble-has-always-been-in-active-management/

Comments

  • davfordavfor
    Interesting look at passive and active investment trends. I hadn't thought about pensions as being a form of passive investment.
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