7IM's Ben Kumar: The debate around the passive pendulum swinging too far

'A catastrophic event' highly unlikely

A lot has been written about the rise of passive investing over the past couple of decades.

From huge institutions through to individuals, many investors have been voting with their wallets. They have been moving away from high-cost active approaches towards low-cost passive products, away from star stock-pickers and towards indices like the FTSE 100 and S&P 500. Goshawk AM: 'Passive is risky' and the case for active management in a global market And one of the more common themes recently is whether, ultimately, the whole world will be passive – and what that will mean. One particularly provocative academic paper suggested that index investing was "worse than Marxism"....