Silver as an investment

Category Archives: index fund

A Gift From The Oldies

By Chris at www.CapitalistExploits.at I bumped into a friendly bloke at my local gym last week. Jim is his name. Jim tells me he just started because, and I quote, “my doctor says I’m going to die unless I do something”. Now, I assure you it doesn’t take a doctor to figure this out. One glance in […]

Black Monday 2.0: The Next Machine-Driven Meltdown

Authord by Ben Levisohn via Barrons, In the rise of computer-driven trading, some hear echoes of the stock market’s 1987 crash. Beware the feedback loop… Black Monday. Although the event to which those two words refer occurred 30 years ago, they still carry the weight of that day—Oct. 19, 1987—when the Dow Jones Industrial Average […]

Human Traders Are Trouncing The Machines

The contemporary low volatility trading environment has been kind to actively managed equity funds – particularly if they piled into large-cap momentum stocks like Facebook and Amazon, which have been responsible for the bulk of this year’s rally. But while active managers have enjoyed three quarters of strong returns, quant funds – purportedly the future […]

“We Need More Suckers At The Table” – Quant Funds Stumble As Dumb-Money Disappears

The omniptence of artificial intelligence is unquestioned. The 'future' is automation, robotization, and algorithmic domination is the mantra of the new normal prognosticators – and anyone who challenges this world view is a luddite or 'denier'. There's just one problem – those quantitative, AI-based, computerized algos, that are supposed to be making people obsolete in […]

Signs Of Excess: Crowding & Innovation

Authored by Lance Roberts via RealInvestmentAdvice.com, I have regularly written about the many shortcomings of human psychology when it comes to investing. More importantly, while the emotions of “greed” and “fear” are the predominant drivers of not only investor behavior over time, they are also attributable to the development and delivery of the financial products […]

WTF Chart Of The Day: There Are Now More Indexes Than Stocks

For the first time ever, the number of market indexes now exceeds the number of U.S. stocks… As Bloomberg reports, traditional ones such as the S&P 500 are collections of securities weighted by market value, and index funds mimic them as a low-cost way to deliver the market’s performance. Many new indexes are different: They […]

FPA: “ETFs Are Weapons Of Mass Destruction; We Could Get An Onslaught Of Selling”

One of the recurring themes on this website over the past two years has been the growing threat posed by the flood of capital out of active investing and into passive, and far cheaper and better performing (under central planning) vehicles such as ETF. For a quick rundown, here are some recent posts on the […]

Passive Negligence – The Soaring Popularity Of “Cover Your Eyes & Buy” Investing

Authored by Michael Lebowitz via 720Global.com, Passive Negligence Part II Almost a year ago, we stumbled upon a topic that is currently generating much discussion in the financial media. In Mm Mm Good, published August 2016, we highlighted the Campbell Soup Company (CPB) and the utility sector to show how yield-starved investors were chasing dividend […]

Scientific Proof ETFs Make Markets Dumber

One of the horses we have beaten to death starting in 2013 (with Why The TBAC Is Suddenly Very Worried About Market Liquidity) is that the relentless growth in ETFs in particular, and passive investing in general, is one of the greatest threats facing the US equity market for one main reason: “phantom liquidity”, and […]

Which Hedge Funds Are The Biggest Holders Of ETFs

The relentless growth of passive investing in general, and ETFs in particular, has been extensively discussed on the pages over the past few years, most recently overnight when we presented a note from Convergex which laid out some ideas how investors can profit from the unstoppable – for now – shift from active, and expensive, […]