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Sam Stovall on the Year-End Rally, Millennium Wins by Not Losing, CVS Gets an Activist

The Compound and Friends

NOTE

Passive Investing is Not a Path to Communism

Commentary suggesting that the rise of passive investing signals a move towards communism is largely unfounded and reflects the frustrations of active managers who struggle to outperform indexes. Historical data, such as SPIVA reports, demonstrate the challenges active managers face in consistently beating market indexes, indicating that market inefficiencies persist longer than individual investors can endure. This perspective highlights that concerns over passive investing leading to market failure are more about the defense of traditional active management rather than legitimate economic concern.

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