Today, at least 10 percent of all assets in the S&P 500 is ‘passive’.
We can invest our money at the flick of a button to 500 stocks, but we still can’t move our money very quickly.
I just sent a wire from Schwab to Wells Fargo …basically 3d printing a bitcoin is easier …#archaic #asshats
— howardlindzon (@howardlindzon) August 25, 2014
I believe in passive investing. In this low interest rate boom for stocks, the longer you have deployed cash to the US Markets the more you have made. For most, dollar cost passive investing is good for 90 percent of one’s investable assets.
I am also a believer in ‘active’ investing, but to be active, you need quick access to YOUR capital. It may mean moving money between institutions, but of course institutions hate that. Like the phone Companies that don’t like you switching, the banks hide behind the paperwork and regulation to make moving money stressful and slow.
That’s why Square, PayPal, NFC, Mobile apps like Robinhood for brokerage and a slew of other technologies are not developed in house at banks. Crowdfunding is yet another choice for active investors. I predict there will be passive choices to angel invest in 5-7 years for most investors but it’s a great time to learn how to be active and prudent.
The passive trend may go on for a long time more or investors could get jolted at any moment, I just continue to want choices.
You should as well.
Good vision there Howard. Look for new types of asset management firms to start popping up sooner than later, aimed at more than just stocks and bonds.
Crowdfunding should be an interesting trend to watch develop. With average “joes” now lending out money to individuals, banks and other lending institutions have a new competitor that will give them a run for their money!
But isn’t it amazing how fast you can get money INTO the account vs getting it OUT?
with new banks like robinhood, it will be just as easy…thats what millenials will demand…