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John Authers & Michael Gayed: Unraveling the Peak Passive Debate

Lead-Lag Live

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The Inertia of the Stock Market

When you try to make it easier for people to channel their money into the stock market or other markets, what tends to happen is that you create incentives. It's very difficult to know how to address that given that there is a desire for simplicity. I think the influence of people didn't realize how much power they had given to the ratings agencies when they're making regulations about whether you could invest in investment grade pre-GFC. Nobody ever intended to endow MSCI one private sector index with that kind of power, but it happened.

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