Four Calling Birds

Thu, 2017/12/28 - 9:33am | Your editor
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The Christmas New Year holiday link is very strong and today my internet went down and it is more than 5 hours into the market day as I write today’s blog. A Microsoft windows update overnight took down my fiberoptic link and I am starting all over again with today’s screed.

Meanwhile the one I wrote on is going round and round with an ill-timed Windows 10 update.

In addition to the gap in performance by exchange-traded funds vs their indexes for fixed income, small caps, and emerging markets--all of which are relatively specialized--a new outlier was discovered by analysts at a UK brokerage which offers stock selection to its clientele. As my source is a family member I am not giving the broker’s name but--yes--it is backing its own book by reporting that 21% of UK stock index tracking funds fail to match their indexes. They either do better or worse, but they do not match.

Since the London Stock Market is the closest large proxy outside the US for passive funds, this gap is surprising. And it also is backing my book, since I feel stock picking still has a role in global investing if not in the USA.

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