Passive Resistance — How Price Discovery Survives: John Authers

To get John Authers’ newsletter delivered directly to your inbox, sign up here.

Today’s Points:

• Passive investing’s distortions are caused by new inflows into funds.

• Benchmarking by active funds exacerbates this.

• The way to maintain price discovery is through growing private markets, not better active management in public markets.

• Bitcoin is back, and now it’s trying to get into the banks.

• TIP: Try a great podcast on Britain’s annus miserabilis 1974.

Passive Aggression

Passive investment sounds harmless. Its name implies that funds managed passively don’t really do anything. But it’s increasingly cast as an agent of destruction, breaking markets and fighting capitalism. As passive has moved to a much more dominant ...