I don’t know about you but to me, it feels like over the last 20 years or so, the stock market has become less and less discerning about corporate earnings. Whether a company has good or bad earnings matters less and less for share prices and instead it is the overall market sentiment that drives a larger chunk of equity returns.
I suspect this has been driven by the tide of easy money over the last 20+ years -- as monetary tightening, energy crises and deglobalization take hold, I am guessing that we will have a’60s style lost decade in equities overall and passive/index investing will become less important compared to stock/sector picking.
Perhaps you could do a segment on what would happen if 75% of the money in the market was passive...... it would be interesting to hear your thoughts.....
I suspect this has been driven by the tide of easy money over the last 20+ years -- as monetary tightening, energy crises and deglobalization take hold, I am guessing that we will have a’60s style lost decade in equities overall and passive/index investing will become less important compared to stock/sector picking.
Perhaps you could do a segment on what would happen if 75% of the money in the market was passive...... it would be interesting to hear your thoughts.....