INDEXING IS HERE TO STAY (EP.2)

<p>In Episode 2 of the Rational Reminder podcast we discussed the following:</p> <p> </p> <ul> <li>The underperformance of value stocks</li> <li>Are we in a Winner Take All market?</li> <li>Facebook’s crash</li> <li>Global value performance</li> <li>Canadian value premium at ~+5.5%</li> <li>Rebalancing into the pain</li> <li>Factor diversification</li> <li>Having a philosophy and sticking with it</li> <li>Index fund flows are slowing down in the US</li> <li>Canadian active funds are still dominating passive ETFs</li> <li>Markets are still efficient</li> <li>Deciding to be an index investor takes work</li> <li>Fewer highly skilled active managers make markets more efficient</li> <li>Canadians might need to buy real estate to retire</li> <li>Doctors were sold out by MD Management</li> <li>Should you listen to the yield curve?</li> <li>Michael Batnick’s chart crimes</li> <li>DFA’s weights vs. the S&P 500 weights</li> </ul> <p> </p> <p>The stories we talked about:</p> <p> </p> <ul> <li><a href= "https://www.pwlcapital.com/en/Advisor/Ottawa/Cameron-Passmore/Advisor-Blog/Cameron-Passmore/July-2018/Don-t-cry-over-underperforming-US-value-stocks" target="_blank" rel="noopener">Don’t cry over underperforming US value stocks</a></li> <li><a href= "http://www.osam.com/Commentary/osam-quarterly-investor-letter-q2-2018" target="_blank" rel="noopener">O’Shaughnessy Quarterly Investor Letter Q2 2018</a></li> <li><a href= "https://www.bloomberg.com/view/articles/2018-07-18/slower-inflows-to-passive-funds-don-t-signal-investor-discontent" target="_blank" rel="noopener">Index Funds Are Going to Be Just Fine</a></li> <li><a href= "https://www.economist.com/finance-and-economics/2018/07/05/the-growth-of-index-investing-has-not-made-markets-less-efficient" target="_blank" rel="noopener">The growth of index investing has not made markets less efficient</a></li> <li><a href="http://freakonomics.com/podcast/richard-thaler/" target="_blank" rel="noopener">People Aren’t Dumb. The World Is Hard.</a></li> <li><a href="http://www.cmaj.ca/con