We were very pleased to see someone else pointing out the potential negative societal aspects of passive investment, even going so far as to compare the phenomenon to something worse than Marxism!
This Bloomberg article highlighting commentary from investment firm Sanford C. Bernstein Co., LLC, hits the nail on the head.
Hooray! we say. We just wish more financial industry folks would speak up on the subject.
We've been writing about it for a long time:
December 2015: "Get Out of the Market"
August 2015: "Toxic Bloom: How the unexamined dangers of ETFs threaten investors and the efficiency of markets"
July 2014: "The 'passive' investing myth"
August 2012: "Who's right Bill Gross, Jeremy Siegel? Answer: George Gilder"
December 2011: "The fantasy world of modern portfolio theory"
June 2011: "New investment idea: invest in good businesses"
July 2010: "Free markets, free enterprise, Friedrich Hayek, and active allocation of investment capital"
October 2009: "S&P takes aim at active management"
May 2008: "The active vs. passive debate"
November 2007: "Would you prefer options linked to your company or the S&P 500?"
Stay tuned as we will keep on the topic!
