Surviving in a market you don't trust but where you must act as if you do?

ActivePassiveBen Hunt, Chief Investment Strategist at Salient, past academic and columnist writes about the toll exacted from the collective embrace of ETFs + index products and through our collective tolerance for central bank magic spells. He says that this creates collective risk on a terrible scale, but notes that there's no career risk in collective risk. In particular, he attempts to dispel the notion that ETFs and index products are somehow 'passive' investments. On the contrary, he says that they are 'the very instantiation of active portfolio management, where investors are making an inherently and completely active decision on this sector versus that sector'. Read more