Monday, June 22, 2009

Big investors dumbing down

Pension funds now just want to "index."

A growing number of big investors are concluding that stock and bond pickers failed to add any value during the market turmoil and are shifting to index funds, a move that threatens to cut profits for asset managers...

Thanks in large part to a growing preference for index funds, the Bank of New York Mellon Corp. unit is forecasting a record number of asset managers will be replaced in the second half of this year...

Rather than try to pick winners, many institutional investors are more worried about being stuck with losers, so they now are choosing index funds.

The only question is, where is the indexer that wants to short China?

After all, didn't Beijing start it's own form of indexing Friday? Wasn't the state pension fund taking over some positions in some listed state-owned shares?

Quick, get out John Vogle! And then we'll get more of these!

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