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Indexing the future


JBird

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Hello all,

 

While there is value to active investing in certain cases, we know society as a whole is better off with an indexing strategy. Right now index funds make up about 17% (and rising) of the total US stock market. I believe this number should far exceed 50%; that society should move from net active to net passive.

 

I believe the hindrance to this is the laity being uninformed about answers to key questions: what is investment risk, what drives stock prices long term, why the market fluctuates and how to view those fluctuations, why a passive index strategy is superior to active, and why we should have confidence the market will do well over the long term. Therefore I believe the societal solution is to provide engaging and entertaining education on these questions to help investors a) rise above market-driven anxiety and fear and b) start thinking like business owners so they may profit like business owners.

 

Wondering if there's anyone here who not only agrees but wants to do something about it with me.

 

Cheers!

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Guest longinvestor

+1 to promoting this. I am somewhat doing this within my circles. Still all ears as to techniques, tips, resources etc. in my pursuits.

 

IMO, this board(at least a good proportion of active participants) is likely conflicted with this. Super active investor would fit the description. Besides several are actively managing OPM.

 

I’m not a regular at Bogleheads but that group along with the Early-Retirement forum has some informal supervision to keep pollutants out.

 

I recommend to anyone the book “Enough” by Bogle. If there’s any large truths that frames the underlying issues of active investing, this has it.

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