Retirement Watch Lighthouse Logo

Index Investing Advocate Changes His Mind – Why?

Last update on: Feb 07 2020

Burton Malkiel wrote A Random Walk Down Wall Street in which he advocated investing in index funds. He’s maintained that position since, issuing many revised editions of the book and serving on Vanguard’s board. Now, he’s on the board of a new firm and advocates its active investing style. Read the details here.

“Even though Burt Malkiel was never a die-hard efficient market person, he was pretty staunchly in that camp,” Mr. Arnott said. “He has acknowledged there may be some market inefficiencies, but any advantage from trading on them got eaten up in fees. Now the approach has become so cost-effective that even a skeptic like him is acknowledging it can add value.”

A large and growing body of academic research suggests there are market anomalies that can be exploited to beat a strict index approach. Some of that research has been recognized with Nobels in economic science — William F. Sharpe in 1990 and Eugene F. Fama in 2013.

 

bob-carlson-signature

Retirement-Watch-Sitewide-Promo
May 2022:
Congress Comes for your Retirement Money
A devastating new law has just been enacted, with serious consequences for anyone holding an IRA, pension, or 401(k). Fortunately, there are still steps you can take to sidestep Congress, starting with this ONE SIMPLE MOVE.
X

Log In

Forgot Password

Search