You’re probably unaware, but if you own an index fund in addition to your dividend stocks you are supporting a movement that’s killing capitalism and that’s worse than communism.
That more than slightly over-the-top assessment of passive investing comes not from some kook in a tinfoil hat, but from the big shots at a major Wall Street firm.
‘Worse than Marxism’
In their 47-page research paper, “The Silent Road to Serfdom: Why Passive Investing is Worse than Marxism”, a team at Sanford C. Bernstein & Co. headed by Inigo Fraser-Jenkins, Head of Global Quantitative and European Equity Strategy, said that if passive management comes to dominate investing, our economy will be worse than “a centrally planned economy.”
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