The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:The Year of the Stock Picker? Malkiel Scoffs Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, June 06, 2017

The Year of the Stock Picker? Malkiel Scoffs

News summary by MFWire's editors

The author of A Random Walk Down Wall Street is publicly shooting down the idea that the worm will turn on index funds and that this year (or any other) will be "the year of the stock picker."

Burton Malkiel again took to the pages of the Wall Street Journal to defend index funds and bemoan active managers' collective "dismal record." Malkiel picks up on new "impressive support" for index funds from a new S&P report, and he uses it to repeat the classic mantra that investment performance (well, relative performance anyway) "has to be a zero sum game", except with costs "the game becomes negative-sum."

Malkiel also rebutted, again, a 2016 AB report attacking passive investing as "worse than Marxism." Malkiel notes that active managers have an incentive to help keep markets efficient and liquid, despite the continuing rise of passive managers.

"Americans have far too much active management today, not too little," Malkiel writes. "If anything, the stock market is becoming more efficient — not less so — despite the growth of indexing."

A famed economist, Malkiel currently serves as chief investment officer of Wealthfront, one of the bigger independent roboadvisors in the business. Like most roboadvisors, Wealthfront builds portfolios out of indexed ETFs. 

Edited by: Neil Anderson, Managing Editor

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2023: Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2023
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use