Passive market capitalization investing will always, with 100% certainty, underperform some other investment. Market capitalization weighted investments will always overweight assets that underperform and always underweight assets that outperform. This will always be the case. Ideally, you would hold future market capitalization weights today. Unfortunately, we can demonstrate empirically that identifying future outperforming assets, future underperforming assets and future market capitalizations is notoriously difficult. None of this is likely to make underperforming asset manager feel any better. #marketcapitalization #globalequities #equitymarkets #investing #stockmarket #marketcommentary #cfainstitute
6 сен 2024
