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World Stock Markets Trading Discussion - Middling maceration


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THE PASSIVE FUND MYTH EXPLODED

 

 

Jeffery Gundlach says passive investing does not exist

 

At the Ira Sohn comnference Jeffery said that passive investing does not exist

 

Jeffery is exactly correct.

 

Index investing is not passive investing  - It is active rule based investing

 

The rule to buy stocks going up in value and sells stocks going down is a MOMENTUM rule.

 

No investment by its very nature can be passive

 

Indeed a large number of active fund managers are MORE PASSIVE in their investment strategies than the misnamed passive index funds.

 

And that (along with their higher management fees)  explains to a great extent why the majority of active fund mangers under perfrorm the misnamed passive but in reality more active index fund managers

 

They stay in stocks which are going no where or are going down while the misnmamed passive but in reality active index fund managers are buying the stocks that are going up.

 

I.e  index funds are in reality momentum funds.

 

But their achiles heel is that they ignore value.

 

One day value will catch up with index funds and it wont be pretty.

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Clever.

 

XIV.

 

Inverse VIX. 

 

yuk yuk

 

no, seriously doc XIV

 

i know lots of us like to twist letters or right simple engrish rongly but

 

XIV is a real thing.

 

it's and ETF that everybody is buying because it's "free money"

 

every advisor, every portfolio manager, every trader 

 

it's the only "sure thing" out there

 

buy some and they just create more so sheeple buy more so they create more so sheeple buy more so they create more..

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