Excess Returns  cover image

The Practical Implications of the Rise of Passive Investing | Mike Green

Excess Returns

CHAPTER

Investor Expectations and Market Dynamics

This chapter explores the stability of investor expectations for equity returns over the next decade, projecting a range of 6.5% to 7% in line with historical averages. It examines the effects of passive investing on market valuations and investor behavior, alongside potential risks of an extended bear market due to economic downturns. The discussion reflects on historical shifts in investment strategies and the challenges faced by hedge funds in the evolving financial landscape.

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