I’ve been extremely fortunate to be in the investment industry for more than 35 years. Because of my tenure in the industry, I’ve been spending much more time in the last several years sharing thoughts on various topics, especially those related to the U.S. pension industry, hoping to provide education and useful perspective.
I recently was asked by FundFire to weigh in on the passive versus active argument, which I was happy to do, as I think that there is a need for both, and factors / exposures that favor one versus the other at various times.
I received the following in my in-box today that also relates to passive indexing. I’m very skeptical of the conclusions in the original study that was the basis for the NY Times opinion piece.
I thought you might like this article from Seeking Alpha
Should Government Regulation End Indexing As We Know It?
by James Picerno
An op-ed in The New York Times today lays out the case for imposing new restrictions on how index funds operate. The rationale, according to the authors, is to prevent the reduction in competition in industries that is a direct consequence of indexing. If the proposal is implemented as outlined, the indexing strategy for equity investing that’s widely practiced could be headed for extinction.
I’m happy to discuss this in greater detail with you. Please don’t hesitate to reach out, especially if you have an opinion that differs from mine.