Don't quit the market ... just quit hugging the index

Massive outflows from index hugging fund managers should not trouble you ... the best investors follow these rules.

PORTFOLIO POINT: Fund managers tracking the index are locked into a faulty structure. The index should only contain the best-performing stocks, not the biggest.

Rather than reporting on companies that I think are good, bad or ugly, this is a story of far more enduring importance to investors.

So let me start with an observation: investors are leaving the stockmarket in droves.


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