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Don’t Blame Indexing
The Idea Farm
April 21, 2024
Together With
“You make enough mistakes by mistake, don’t make one on purpose.”
Research
Owen Lamont thinks the discussion about passive investing is misguided. He argues an increase in passive investing does not necessarily mean the market becomes less efficient.
Torsten Slok’s 100+ page deck covers every angle of private markets - private equity, real estate, private credit, venture capital and more.
Facts & Figures
Two stocks - Super Micro Computer and MicroStrategy - accounted for more than a third of the Russell 2000’s 5.2% return in the first quarter, according to data from LSEG. Link
The US has built more commercial nuclear reactors (two) in the past 25 years than it has major commercial airports (zero). Link
Almost one fifth of government revenues are now used to service foreign loans in Africa. Link
99.5% of once-lost checked and carry-on bags were reunited with their owners in 2023, per a report recently released by the Unclaimed Baggage Store. Link
Tech valuations over the past 35+ years. Link
The Leuthold Group looks at today’s valuations vs. ‘bubble thresholds.’
As of April 6, 2024
The global supply of public equity is shrinking at its fastest pace in at least 25 years. Link
As of April 4, 2024
"One notable takeaway from our analysis of data back to 1928 is that average full-year price returns in election vs. non-election years are basically the same ― at 7.3% and 7.5%, respectively ― but the path to getting there is very different..."
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Idea Farm readers can join 10 East with complimentary access here.
Podcasts
 3/28/2024 - 58 minutes | Rob Arnott discusses investing in a high inflation world, factor timing, AI, value investing & more. |
 3/27/2024 - 73 minutes | Napier discusses the rise and fall of the age of debt and China’s choice between deflation and devaluation.
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 3/28/2024 - 66 minutes | Greenig talks about pursuing global trends & capturing narrative shifts. |
What Else Is Happening
Did you miss last week’s email?
Meb Faber spoke with Professor Kenneth French about the global market portfolio, stock buybacks and more.
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