Index-tracking is the flavour of the day - it accounts for around one-third of the total US mutual fund market, and is still growing rapidly.
Indexing appears to be unstoppable.
But, in The End of Indexing, investment veteran Niels Jensen presents a different vision.
In a forthright and compelling examination of the investment landscape, Jensen argues that the economic environment we are entering will be unsuited to index-tracking strategies.
Jensen identifies six structural mega-trends that are set to disrupt investors around the globe: 1.
End of the debt super-cycle 2.
Retirement of the baby boomers 3.
Declining spending power of the middle classes 4.
Rise of the East 5.
Death of fossil fuels 6.
Mean reversion of wealth-to-GDP In conjunction, these six themes have the potential to create conditions resembling a perfect storm that will result in low economic growth for decades to come.
Investment techniques and methodologies - including passive investing strategies - that have worked so well in the bull market of the last 35 years will no longer deliver acceptable results.
As a new investment approach is called for, The End of Indexing provides investors with a guide to the challenging environment ahead and a warning about the future decline of index-tracking.
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Harriman House The end of indexing: six structural mega-trends that threaten passive investing, hardcover/niels jensen
