The bear hasn’t broken passive yet
One of the most persistent stories that money managers have whispered to themselves before going to bed every night over the past decade is that passive funds will definitely be found out in next big bear market.
Sure, they murmured, their active funds were underperforming right now, but only because stupid central banks and their stupid ultra-easy monetary policy were “distorting” financial markets.
And those evil passive funds were also distorting markets! After all, why else would record-smashing cash machine Apple and the rest of the quasi-oligopolistic technology industry dominate equity market returns over the past decade? Right?
This story originally appeared on: Financial Times - Author:Robin Wigglesworth
