We can&#x27;t help but feel sorry for the difficult task of stock picking, Nike falls dramatically and we investigate the plumbing of indexing to see if it can pass a stress test.

Stock Picking Delusions, Nike's Fall, and the Limits of Passive Investing: Can We Go Too Far with Indexing?

Robert Hunt Financial Market Update

Welcome to the Robert Hunt Financial Market Update. It's your host, Robert Hunt. Where I look at the week's financial news like it'd be a bit confusing, misleading, and today, of course, I have to make it actionable, understandable, and clear. What a week! Therefore, what a show. We're going to be looking at one of our favorite topics, but when it comes in the Wall Street Journal, they always package it so nicely. Stock picking funds are performing as poorly as ever.

Oh, these poor active funds. And then I saw this on the internet this week. A lot of folks were looking at Nike. Yes, Nike, just do it. We're going to look at their performance over the past five years as a company, related to their stock price, and see what we can learn. And then we go into a corner. This is Robert's Corner, but a special Robert's Corner edition where we're going to look at their stock price.

We're going to be looking at some of the best client questions. We're going to be looking at some of the best client questions I received this week. Should I hold cash due to this elevated market pricing? Hmm? That's a good question. What happens when the index funds have too much money? Will it be a problem long-term? So we'll certainly get to that.

But at the top, stock picking funds are performing as poorly as ever. Check this out. Just 13%. Did you hear that? 1-3% of U.S. large cap funds have outperformed indexes over the past decade. New data shows.

Stock Picking Delusions, Nike's Fall, and the Limits of Passive Investing: Can We Go Too Far with Indexing?

Read the full transcript

The candid version is on a podcast,
not the earnings call.

Stock Picking Delusions, Nike's Fall, and the Limits of Passive Investing: Can We Go Too Far with Indexing?

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.