Index Fund Pioneer Warming to Computer-Generated Trading

Princeton economics professor Burton Malkiel, who started the first passive index fund for Vanguard in 1976, has experienced a “remarkable change of heart,” according to a recent article in the New York Times. Referencing Malkiel’s revolutionary notion that dart-throwing monkeys could pick winning stocks as well as market “experts,” the article says the “index-fund evangelist” now believes, “Maybe the experts can beat the monkey after all. That is, if the experts are software engineers writing sophisticated algorithms for computer-generated trading.” Malkiel, chief investment adviser for automated investment management firm Wealthfront, recently adopted a new approach they call Advanced Indexing. The […]

Malkiel Warns of Expensive Market and Lower Future Returns

Burton G. Malkiel, CIO of Weathfront and author of the best selling investment book, “A Random Walk Down Wall Street”, offers advice for investing in an expensive market in the Wall Street Journal. He says: “U.S. securities markets are highly priced at the start of 2016, and future returns will most likely be lower than in the past. But the timeless lessons – keep invested, don’t try to time the market, and diversify broadly – remain the best guide for investors.” He reminds investors that “money set aside for fixed future expenses (like the college tuition bill) needs to be […]

“Random Walk” Author Malkiel: Keep It Simple

Burton Malkiel, the Princeton economist known for his book A Random Walk Down Wall Street and espousal of the efficient market hypothesis, hasn’t changed his beliefs after the recent financial crisis and market meltdown. In an interview with CBS MoneyWatch, Malkiel talks about why the past decade has actually reinforced his belief that a portfolio of diversified stock index funds, bonds, and cash, rebalanced periodically, is the best option for investors.

Gross, Lynch, Malkiel: Varied Perspectives on Current Market

In interviews with the Washington Post, three top market minds — former Fidelity star manager Peter Lynch, PIMCO’s bond guru Bill Gross, and Princeton professor and author Burton Malkiel — offer some pretty wide-ranging views on the stock market and where we’re headed. Lynch and Malkiel express a fairly bullish take for long-term investors. Lynch says that the recent market plunge has affected great and good companies as well as mediocre firms. “It’s brought them all down,” he says. “Bargains are all over the place. There are so many attractive stocks out there. But they keep going down.” Lynch says […]

Bogle, Siegel, O’Shaughnessy: Where Do They Have Their Own Money?

While they have been hit hard over the past year, many of the world’s top investors aren’t shying away from the stock and bond markets, writes The Wall Street Journal’s Eleanor Laise. In fact, many have been snatching up bargain stocks and bonds for their own personal portfolios while most investors have been fleeing the market. “A sampling of high-profile industry veterans, academics and brokerage-firm chiefs reveals that many are hanging on to holdings battered by last year’s market slide and busily hunting down new opportunities, particularly among bonds and beaten-down value stocks,” Laise explains “And they’re generally upbeat about […]