Are passive funds to blame for market mania?
[ad_1] Listen to this story.Enjoy more audio and podcasts on iOS or Android. Your browser does not support the <audio> element. The year is 2034. America’s “magnificent seven” firms make up almost the entirety of the country’s stockmarket. For Jensen Huang, the boss of Nvidia, another knockout quarterly profit means another dizzy proclamation of a […]
Big tech’s dominance is straining the logic of passive investing
[ad_1] “Don’t look for the needle in the haystack. Just buy the haystack!” So wrote Jack Bogle, who founded Vanguard Asset Management in 1975 and brought index investment to a mass market. Subsequent decades proved him right. “Passive” strategies that track market indices, rather than trying to beat them, now govern nearly a third of […]