Why does passive investing become so hot?

Discussion in 'Trading' started by 0008, Nov 10, 2021.

  1. newwurldmn

    newwurldmn

    I think it will continue forever. The easy returns in hedge funds (the arbitrages, fat risk premiums, etc) have been compressed to almost nothing because of capital, technology, and access.

    hedge funds have to get much much smarter to outperform. This is one of the reasons hedgefunds changed their mandate to “risk adjusted returns” and started aiming for 6-10percent in “all markets” though we know they mostly suck at that too.
     
    #11     Nov 10, 2021
    Laissez Faire likes this.
  2. %%
    Long story short;
    lower fees/better returns as a general rule. When i was in elementary school kid the cash market for recycled KO bottles+ containers was HOT/LOL:D:D
     
    #12     Nov 10, 2021
  3. kroxobor

    kroxobor

    Because when productivity falls, intense redistribution comes into play. Also access to trading becomes increasingly easy and cheap and aggressive marketing including crypto hype is difficult to resist.
     
    #13     Nov 10, 2021
  4. SunTrader

    SunTrader

    When I was a school kid ... I was trading baseball cards not stocks and bonds. o_O
     
    #14     Nov 10, 2021
    murray t turtle likes this.
  5. lindq

    lindq

    Did you eat the gum? Hated the gum.
     
    #15     Nov 10, 2021
    murray t turtle likes this.
  6. Overnight

    Overnight

    Fleer gum was the worst-tasting gum ever. Saccharin-laden nightmare.
     
    #16     Nov 10, 2021
  7. RedSun

    RedSun

    Why? Because on the corporate level, we have so many idiots like Elon Musk to manipulate own stocks. Apple's Tim Cook is a clever one, but the same principle.

    So we take the market index, better equal weighted. So we get rid of the corporate noises.
     
    #17     Nov 10, 2021
    murray t turtle likes this.
  8. %%
    Exactly;
    but who knows ,maybe he learned something from the SEC $40,000,000 fine??
     
    #18     Nov 10, 2021
  9. RedSun

    RedSun

    Is that SEC fine enough? Clearly not.
     
    #19     Nov 10, 2021
  10. Big AAPL

    Big AAPL

    Topps had the best gum...hard and crunchy when you first bit into it and then turned into a bubble making machine. Followed up by a toasted almond ice cream bar by the good humor man on the bicycle pushing a cooler with dry ice...that we bought for 5 cents to make Herman Munster potions...Good times.
     
    #20     Nov 10, 2021