The Trader 

Bearish outlook for European stocks

The Trader

I am reliably informed by the Index Industry Association (IIA) that in its realm there are now nearly 3.3m indices to play with. The World Bank says there are 43,192 publicly listed companies around the world – meaning that there are 70 times as many indices as there are individual shares to buy. Many blame the proliferation on exchange traded funds, derivatives and passive investing more generally. As index providers receive a fee from those who want to use them, there’s the first incentive; then there is name recognition and status. The IIA believes they are needed so that active asset managers can benchmark their performance.

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