+ Passive and active US equity funds reach parity [ETF Stream] Passive US equity funds reached $4.3trn at the end of April, equaling that of its active counterpart, according to Morningstar’s US fund flow commentary.
+ Warren Buffett has just about given up on beating the S&P 500 [Market Watch] Warren Buffett, one of the most successful stock pickers of all time, really wants you to stop picking stocks.
+ Episode 48: Current Investment Topics: Market Efficiency, Grossman-Stiglitz Paradox, and the Home Ownership Debate [40:09]
On today’s episode we kick it off with a combo of a current topics, answering listener questions, and discussing the bad advice of the week. We then dive into the huge shift in the industry in the US in terms of fund flows into index funds out of active mutual funds. When you look at the overall US market cap, 13% of it is in index funds.
This means that price discovery is being done by 87%. Inside this episode we unpack what that means for investments overall and how it differs in the Canadian market. We then take to a deeper discussion on our portfolio management topic of the week, which is looking at the relationship between price and future returns.
More Recent Rational Reminder Episodes
+ Episode 47: Used Car Business: Inventory, Margins and Customer Experience, with Brad Boehme [35:10]
+ Episode 46: Raw Truth of Investment: Why the Best Investment Advisors Cannot Beat a Dart [36:25]
+ Episode 45: Preparing for a Changing World: Advice that Sticks with Dr. Moira Somers [35:48]
+ Episode 44: Interactions with Trolls: Who Should You Listen To? [38:07]
Even the most rational index investors might catch themselves wondering if they should sell some of their equities, or delay investing new cash, because of expected market volatility, or reports of record high stock prices.
More Recent CSI Videos
+ Renting vs. Buying a Home: The 5% Rule [CSI Video 10:35]
We hope that you found our newsletter useful and informative.
Cameron & Ben