After reading margin of safety - I can't help but think Indexing is a massive fad that will turn off institutional and retail investors at the end of the inedible credit cycle which will cause a large stock market downturn. Interested to hear what your thoughts on the next/current wall street fad?
edit: did not intend this to be a debate about indexing, just what my $0.02 on the current wall street fad
I don't think that it's a fad. Research does show that most active managers can't beat their benchmark over long time horizons, and a large portion of that is due to the costs associated with them. I think that there will be a balance of active and passive management, but in order to compete, active managers will need to reduce costs (such as through consolidation, economies of scale, and restructuring). As for the next fad, I don't know, and if I did I'd probably be finding a way to trade off of it.
managers should obviously switch to Robinhood to keep their costs low.
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