stock-markets
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Passive Investing Isn’t as Passive as You Think
Index funds were designed to follow the market, not to beat it. But what happens when more and more money chases the same index? Could the followers end up influencing the very market they are supposed to track? The idea behind passive investing is simple. Research going back decades found that most fund managers struggled… Continue reading
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Markets, Madness and Melody
The “Efficient Market Hypothesis” (EMH) became hugely popular in the seventies and influenced market thinking for a long time (it still does). Essentially, it postulates that markets are efficient, and prices reflect all available information at any given time, so outperformance can only be achieved by taking more risk. EMH gained popularity because it was… Continue reading
