Market Factors: Unlikely source dispels passive investing myths

In this edition we have a Goldman Sachs strategist, of all people, refuting some negative myths about passive investing and its effects on equity markets. , I unveil my favourite fictional president and we look ahead to upcoming economic data.Goldman Sachs chief U.S. equity strategist David Kostin might be motivated to poke holes in passive investing - active investing is more profitable for his employer - but instead he took the opposite approach in his Weekly Kickstart report. Mr.

Variation in valuations is also not affected by index investors. Mr. Kostin found that company fundamentals explain roughly 50 per cent of the differences in valuation between stocks. Including the extent of passive fund ownership for each stock, however, was not associated with valuation differences.

Another is that I don’t love sector ETFs. They will probably perform better than picking individual stocks in that sector, but that misses the point. The advantage of passive investing investing is diversification - owning the entire index to capture whatever type of performance leadership occurs. The reason I’m bringing up a movie I didn’t like much this week is that Jeff Bridges almost rescues the entire operation with my favourite portrayal of a U.S. president ever. President Jackson Evans is folksy, subtle, sly, funny, manipulative, principled and altogether riveting to watch.might be known to many movie watchers but it borders on hackneyed for me. That said, it’s entirely worth it to skip through the movie and watch Mr. Bridges cook throughout the whole film.

Manulife Financial Corp. reports Wednesday with $0.937 per share forecasted. BCE Inc. , Cameco Corp. and Barrick Gold Corp. all report on Thursday.

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