The Hidden Risk of Passive and Index Hugging

What is wrong with passive and index hugging? One problem is that these strategies often use ETFs. I wrote about the potential for ETF meltdown last October, with a follow-up shortly thereafter, so I won’t belabor that here. Another problem is that most passive portfolios follow a cap-weighted index. Recently I also wrote about the…

Why The Stock Market Needs Activist Investors

Rarely do proxy fights look as similar to a Rocky sequel than the mine continuing to play out between Nelson Peltz and Procter & Gamble. Weeks after P&G declared the effort by Peltz to gain a board seat a failure, he jumped off the mat to land a knockout punch after an independent tally discovered…