Nancy Wilson, Jim Bianco, Dave discussed on Bloomberg Businessweek


Has faith in me. And there's sorry. No doubt by now, But, you know, I actually mentioned Alison Change yesterday, Did she? You did? Yeah. You remember, Yes. Version of Hearts Para Cuda with Alison chains. Gretchen Wilson on vocals and Heart's Nancy Wilson on guitar. Yeah, Yeah, there you go. Work that song in somehow into a chart. You gotta figure it out in a minute. Yeah, well, yeah. Okay. We could do the original there too. I mean, what the heck? Yeah. All right. What do you got here? You know, what we've got is an industry group of standard No faith in me. You should just see the control room in there like masters, never going to get this and they were right. All right, Dave, go ahead. You know? Money managers, right? No them down in the hole. Yep, That's sort of how their shares they're doing. And it's something that Jim Bianco over. Bianco Research highlighted yesterday on Twitter specifically sort of asking the question. Why do we even need Active money managers anymore. People who pick stocks because if you look at the shares of the companies they work for. I mean, it's been years upon years of weakness in relative terms on so what he did and what I duplicate in the chart. Was looking at an index of what's called the S and P 1500 asset Management and custody banks in Texas. So you know, it's your big fund management firms. Now all note that Black Rock is actually the base component of that. But when you look at the index overall majority of its weight comes from companies other than those in the exchange traded fund business, working on passive investing. So It's still reasonable yardstick, and what's happened is that you know it's headed for its tough loss relative, the S and P 500 in the past 13 years. And you know, back in mid September. I mean, it got to a record low. It was down 56%. This ratio between the industry group in the S and P 500 from a peak back in February, 2000 And eight Which is, you know, as a bear market was developing in the financial crisis was a sort of unfolding and it's like the group took Major hit then and while it's tried to come back, and it just hasn't been able to do it, so if you want to know more folks send me email. I'll get you the chart. The explanation goes with it and everything I do going forward. The email address is D. Wilson at Bloomberg dot net. That's D Wilson at Bloomberg dot net. So the SNB composite 1500 Asset Management Custody Banks index that's basically publicly held asset managers. Correct. Exactly. Yeah, so you know, it really does target that group. And remember the 1500. It's the S and P 500. The MidCap 400. The small caps 600 all put together, so we're going to cross market caps there. To be fair, Though That's their share prices. It doesn't necessarily sell, how how well they do for their clients in terms of investing, correct. Yeah, Correct. Then again, you know, you can find numbers from the likes of morning store that show you that money has been flowing out of the kinds of funds. They run the actively managed funds, right? And into the passive funds. The index funds Thank E T f. So you know, it's part of a bigger trend for we old folks. You and me, Dave. I mean, like we remember being for yourself. Carol was gonna actually throwing your way. No. But what's interesting is I remember the mutual fund, you know, industry and its infancy infancy, and that was all about active manage. Mary. It's just fascinating to see and kind of a short timeframe. How much it's all about index funds and bear in mind that you know you go back to 1975. That's with Vanguard introduced the first Index fund, and now it's capturing the majority of money. All right, All right. Neither of us are old. I'm just gonna put it that way. Neither is Nancy Lianzhu is standing.

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