Are passive funds to blame for market mania?
They have killed off many of those willing to bet on a downturn
Stay updated with breaking news from Dimitri Vayanos. Get real-time updates on events, politics, business, and more. Visit us for reliable news and exclusive interviews.
They have killed off many of those willing to bet on a downturn
It looks like this was the result of either: A mistyped address A broken link on our site A broken link on a search engine results page A broken link on someone else's page Some things to try: Use the navigation menu at the top Most Read
Investors who poured trillions of dollars into index funds on the conviction that no one can beat the market may actually be making it easier to do just that.
Investors who poured trillions of dollars into index funds on the conviction that no one can beat the market may actually be making it easier to do just that.
Jan. 8, 2021 8:58 pm ET Contrary to reports in recent years that the small-cap effect has disappeared, itâs actually alive and well. Weâve just been looking for it in all the wrong places. The small-cap effect refers to the long-term tendency of small-capitalization stocks to outperform the large-caps. Since the mid-1920s, according to data from Dartmouth finance professor Kenneth French, the 10% of stocks with the smallest market caps have beaten the largest 10% of stocks by an annualized margin of 2.4 percentage points. Much of the past two decades have been an exception t...