5 ms·
I don't think market conditions have much to do with it. Whether to invest in the market, or in a certain asset class, is a separate decision from whether to pi
by dlubarov 10y ago
I don't think market conditions have much to do with it. Whether to invest in the market, or in a certain asset class, is a separate decision from whether to pick stocks or buy a passively managed fund.
Passively managed money has been increasing because there are more low-cost funds available, and lots of education about stock picking versus passively managed funds (e.g. Warren Buffet, A Random Walk).
- Ntrails 10y ago> Whether to invest in the market, or in a certain asset class, is a separate decision from whether to pick stocks or buy a passively managed fund. Picking stocks vs Picking managers vs Passively investing, but sure. You're right in principle but i'd question whether it's true in practice?
- atemerev 10y agoWell, the question is scientifically valid. My theory predicts that when the next major recession happens, Vanguard and other passively managed funds will become dramatically less popular (which will amplify the fall), and actively managed funds will come back. Your theory predicts that none of this will happen when recession strikes. So, I propose we wait and see. :)