Benjamin Franklin, Amazon, Alec discussed on Financial Exchange with Barry Armstrong


Rates in very I have a six percent back card on groceries through American Express the problem is there's a limit of fifteen hundred dollars year cash back and that really is the problem with the star credit cards is that you know you have to have one card to ease for gas purchases one card that you use for grocery purchases another card you use for everything out like it just like I don't know gets very confusing tell us streaming services. you can game the system pretty well though. just by matching up there's different cards and things that don't they have fees on them each year and I think that that like I have one card that I use because I travel but it I get the access to the admirals club yeah right as if through American Airlines says yeah that's my airline that by travel a lot but it just it seems like I said got back current aft of the Amazon card to get my five percent back on my Amazon purchase he's got to be cognizant of like what you're actually spending and whether or not you're actually getting enough bang for your Buck the right car right you need to make sure you use the records just confusing I just want one cars I get ten percent back on everything. every nice women only find I will I it's our tore quite tricky question was thirty nine president George Washington Benjamin Franklin and James Madison were among the thirty nine delegates who signed the United States constitution into law Jonathan Dayton of New Jersey was the youngest signatory at age twenty six while Benjamin Franklin was the oldest at age eighty one and the winner on that question is Alec from Tewkesbury in Alec takes home a fifty dollar gas card as a result would you like to have been able to hang out with Ben Franklin yeah okay kind of like you go through histories you know. fun guys Winston Churchill's another guy on my list reminds me of that office episode where they bring an impersonator Ben Franklin in. and forget about it all right the TV show. maybe you've heard of it. I told you I watch documentaries in the offices documentary. mockumentary a mockumentary. index funds are the new kings of Wall Street I wonder if this doesn't create a tipping point for investing for what perspective what's when we go into just what's happening okay SO funds that track U. S. equity indices crossed four point two seven trillion dollars in assets on August thirty first that was the first time in history that index funds had more in assets that actively managed funds at four point two five trillion at that same point so the growth of index funds has been significant over the last two decades largely led by vanguard with Jack Bogle at the helm he's now passed but there's a number of companies that have kind of taken up that mantle his you still have involved there but Black Rock is another big one through their ice years brand of products obviously get your spiders out there through the S. and P. and so forth but there there's a bunch of companies doing this well the index funds of made money because they just buy everything and they do it cheap because there's no person managing it yes but now that they're the majority buyer of equities that means they're buying all the bad stuff right so if you have an intellectual who's making logically based decisions I think you're gonna see individual managers outperforming indexes because they're like because the index has to buy what what's like a crappy company they in G. right their craft. Fitbit to crappy company apron the the the those indexes have to buy them right but any idiot knows not to buy those stocks right no what what moron is buying Fitbit today or are it would last year the think there's so many bad companies that these indexes half the box walk buster video yeah you don't have to do that if your if your manager site I that's that's my theory now it may take me a few years to be right but I think some day you're going to come back and say general guy was right this is it now is the time to use managed accounts so I think there's there's two different pieces there the first is just looking at this from a trading perspective in theory as index funds become a bigger and bigger chunk in individual investors and fund managers become a smaller piece they actually lose power in the pricing game so let's say that you have a point in the future were individual investors and fund managers are only three or four percent of the market yeah they may say Hey I want to sell this but a they might not have anyone to sell an individual stock to the index fund. no because they have to maintain an allocation is in line with the index so there's questions in terms of can you find a counterparty but on top of that Hey if index funds are moving most of the market then yeah you might have a great idea but the market won't let you make money on it because the indexes no not you're such a small fish that doesn't matter no that's not the case now and I don't think it will be any time soon the other piece that was far as you know what needs to change in order for active managers to be able to out perform you have to have a change in what is coming out of central banks okay central banks and their actions over the last really twenty years in particular have been death for active managers okay because in this environment you don't wanna be buying alpha do you have.

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