Is there a bubble in passive investing?
Passive investing might allow bubbles to grow stronger. On the other hand, we still have a lot of active investors, and I don’t know that I’m particularly alarmed. It’s true that attention has shifted away from individual stocks to indexes. Smart-beta ETFs are an attempt to correct for that.
Will Trump dial down the trade-war talk ahead of the election?
Trump has a great respect for his own gut feelings, and he doesn’t listen to any particular authority. So I’m thinking he’ll get even wilder as his approval ratings go down.
Who is your preferred candidate for 2020?
I tend to prefer Biden because I think he has the best chance of winning. That’s where his support comes from. I’d take any of them over Donald Trump.
Bernie Sanders’s strength in the last election is surprising because he calls himself a socialist and that’s a bad, obscene, dirty word in the U.S. I don’t think Bernie Sanders is going to win. Elizabeth Warren is a smart woman, but she’s a little bit left wing to be elected in America. It would be a surprise victory.
How would a Warren or Sanders victory affect stocks?
The problem with Sanders and Warren is that they want to put taxes on wealthy investors. That should harm the market. At the same time, the market isn’t always logical.
This article provided by Bloomberg News.