• Is there a bubble in passive investing

    • the big short movie example

  • Beware of people talking about low cost, index investing, benchmarking to indexes, etc

  • Most people have no idea how the index returns are calculated

  • In index funds there is investing going on

  • How can you have a bubble?

    • 1999

      • the nasdaq took over as the index for favorites who wanted to own technology businesses

      • market cap weighted like the S&P

    • a bubble bursts because there is only so much money that can flow into stocks

  • The trade war and trade dispute; economies not getting along

  • A bubble could bust; looking at the index itself

  • Talking about the investment stress test as a tool for those invested in indexes

September 3, 2019