Passive funds are about to surpass active funds in AUM
Now all you have to do is watch institutional flows.
Maybe as passive funds exceed actively managed funds in value, the actively managed funds will have more inefficiencies take advantage of as the passive just track their indices.
And as zerohedge put it,
if you shift from equity to debt; to wit, there have been record bond fund inflows in 2019...
... coinciding with record high bond prices, and central banks once again pushing the narrative of zero/negative rates everywhere.
And for those that want to switch from equities to fixed income, it's almost just as simple. Just stay the hell out of the way of the central banks.
Going to have to disagree with Zerohedge here:
And here an interesting observation - if not so much for the human readers out there, who should be considering career outside of finance, as for the robots - while US equities are at all-time highs, the MSCI World ex-US index is still 13% below all-time high, which was hit in 2007. And here, a striking observation from BofA: "If the S&P500 had simply risen in line with global equities since 2009 low it would today be 1433 not above 3000."
The Rever rennnnddd sees this as a tremendous opportunity for active managers to take advantage of the dumbshit machines do. Which will get much more entertaining with passive funds seeing more inflows.