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The really interesting social aspect, to me, is that we have a huge number of people in the US that are concentrated in the financial sector around active manag
by inthewoods 10y ago
The really interesting social aspect, to me, is that we have a huge number of people in the US that are concentrated in the financial sector around active management. What happens to all those people? Are we about to see a huge downsizing of the financial industry?
- prostoalex 10y agoIs the number huge, though? Retail stock-picking is done through mutual funds and active ETFs, which are typically owned by a larger outfit like Blackrock or Franklin Templeton, so the active stock picking is done by a select few managers of the fund. If that goes away, Blackrock or FT can still sell indexes and variety of bond funds. On the hedge fund site extreme churn is fairly typical and considered part of the job. Well-known pickers (known mainly due to their windfall successes of the past and survivor bias) like Stephen Cohen, Carl Icahn and John Paulson are motivated less by the need to live paycheck to paycheck and more by the gambler's high.