Key discussions:
Why active investing's poor performance led to passive's rise
How index fund flows might affect market dynamics
The difference between stocks in and out of major indices
Whether passive investing could potentially destabilize markets
What this means for individual investors
Whether you're a market professional or retail investor, this conversation offers crucial insights into how passive investing is reshaping financial markets and what it means for your portfolio.
Featured Guests' Clips:
Aswath Damodaran on active management's track record
Mike Green on passive investing mechanics
Rick Ferri with the counterargument
Rob Arnott on index inclusion effects
Cem Karsan on why active may rise again
Cliff Asness offering a balanced perspective
00:00 - Introduction
00:33 - Aswath Damodaran on active management's poor track record
02:05 - Dave Nadig on Standard & Poor's research findings
03:14 - Mike Green's analysis of passive investing's impact
06:45 - Discussion of market flows and liquidity
08:55 - Rick Ferri's counterarguments on passive investing
11:22 - Debate on market dispersion and price discovery
13:40 - Cem Karsan on the potential end of passive dominance
17:05 - Discussion of lost decades and government intervention
20:15 - Rob Arnott on index inclusion effects
24:30 - Analysis of stocks inside vs outside indexes
28:50 - David Einhorn's perspective on non-index stocks
32:45 - Cliff Asness' balanced take on passive investing
37:20 - Discussion of the "what percentage is too much" debate
41:10 - Practical implications for investors
44:30 - Dave Nadig on wealth transfer and market risks
48:15 - Final thoughts on flows and market dynamics
51:42 - Closing remarks and farewell
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