Comments on: In The Long Run, We Are All Dead http://www.integrity-research.com/cms/2009/05/27/in-the-long-run-we-are-all-dead/ Tracking developments in the research industry Sat, 18 May 2013 22:53:22 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: ckw http://www.integrity-research.com/cms/2009/05/27/in-the-long-run-we-are-all-dead/comment-page-1/#comment-738 ckw Thu, 04 Feb 2010 18:57:09 +0000 http://www.integrity-research.com/cms/2009/05/27/in-the-long-run-we-are-all-dead/#comment-738 Suzanne makes a critical assumption in her argument - namely that future investors will either desire or tolerate 85-90% of their investments in passive beta-driven vehicles. I disagree. While her argument is logical, humans rarely fail in letting ego cloud perspective. Most assume they are above average. In a capitalist society, this is demonstrated by consuming more resources the peer group. Why should "above average" people expect/seek/demand any less than an above average investment return? Suzanne makes a critical assumption in her argument – namely that future investors will either desire or tolerate 85-90% of their investments in passive beta-driven vehicles. I disagree. While her argument is logical, humans rarely fail in letting ego cloud perspective. Most assume they are above average. In a capitalist society, this is demonstrated by consuming more resources the peer group. Why should “above average” people expect/seek/demand any less than an above average investment return?

]]> By: Valuemaven http://www.integrity-research.com/cms/2009/05/27/in-the-long-run-we-are-all-dead/comment-page-1/#comment-646 Valuemaven Sat, 30 May 2009 15:56:08 +0000 http://www.integrity-research.com/cms/2009/05/27/in-the-long-run-we-are-all-dead/#comment-646 The overcapacity in research venues is what has allowed passive investing to work so well as additional information is quickly factored into the market. If research dies, passive investing will lose its luster because there will be no active information source to drive value recognition of portfolio holdings. Specifically, the death of research will result in an eternally flat equity market, whose value will revert to depressed levels experienced in the 70's. The overcapacity in research venues is what has allowed passive investing to work so well as additional information is quickly factored into the market. If research dies, passive investing will lose its luster because there will be no active information source to drive value recognition of portfolio holdings.

Specifically, the death of research will result in an eternally flat equity market, whose value will revert to depressed levels experienced in the 70′s.

]]> By: Sanford Bragg http://www.integrity-research.com/cms/2009/05/27/in-the-long-run-we-are-all-dead/comment-page-1/#comment-634 Sanford Bragg Wed, 27 May 2009 15:45:37 +0000 http://www.integrity-research.com/cms/2009/05/27/in-the-long-run-we-are-all-dead/#comment-634 Thanks for the heads-up that Suzanne Duncan's presentation is now online. I was grabbed by it too, and put up a blog post, The end of money management as we know it? (http://xpostfactoid.blogspot.com/2009/04/end-of-money-management-as-we-know-it.html) shortly after the conference. Cheers, Andy Sprung Thanks for the heads-up that Suzanne Duncan’s presentation is now online. I was grabbed by it too, and put up a blog post, The end of money management as we know it? (http://xpostfactoid.blogspot.com/2009/04/end-of-money-management-as-we-know-it.html) shortly after the conference.

Cheers,
Andy Sprung

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