“But I don’t own any Chinese stocks!” many individual investors moaned late in the afternoon of Monday, October 26th, “So why has the value of my portfolio dropped?” That’s a reasonable question for investors who have prudently purchased high-quality U.S. stocks, only to see the prices of those ...
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My previous post looked at the bubble in Chinese stocks and the decision of Vanguard and FTSE Russell, in spite of sky-high valuations, to incorporate such stocks into their emerging market indices and funds. Here’s a nice confirming anecdote about the Chinese rally that I came across in ...
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Benchmarking in most businesses makes sense. But in investment, it prompts investors to outsource their judgment to a few indexers that have become the world’s stockpickers of last resort. John Authers, Financial Times One of the best arguments for the success of active management as an ...
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