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Index Funds Have Officially Won!

Index Funds Have Officially Won [Morningstar] – “But for active management, ill omens lurked. Although retail buyers cared little for indexing, the strategy had by the mid-’90s become the rage among institutional investors. What’s more, Vanguard 500 Index’s VFINX 20-year returns were appealing. Before long, the marketplace would notice that fund’s success. In fact, I ventured at the time, indexing might someday account for as much as … gasp … 30% of the fund industry’s assets.” I’m surprised that passive (index) mutual funds have only exceeded 50% market share in January of 2024, I suppose that’s a bit of confirmation bias on my part. Some good thoughts (and criticisms of those thoughts) on the implications of this.

What’s Driving the Stock Market Returns? [A Wealth of Common Sense] – “Earnings growth has been the main driver of stock market returns since the end of the Great Financial Crisis. It’s also worth noting that although dividend yields have been relatively low in recent decades, the growth in dividends paid out by corporations has been healthy.”

Minimalism is Neat, but Clutter Makes a Home [The Atlantic] – “I’m reconsidering these mementos and many others as I try to clear out space in the small apartment I share with my husband and toddler. But I can’t seem to give them away. So they collect in the corners of rooms, evoking the randomness of a thrift store—and not the twee, curated kind. I don’t necessarily love the look of mismatched junk congesting the nooks and crannies of my home, but the clutter satisfies a deeper emotional need. Collectively, it represents every stage of my life, the lives of relatives who have died, and now the life of my not-quite-2-year-old daughter. It connects me to people and times that would otherwise feel lost.” Ok maybe clutter isn’t so bad… and the last paragraph is a doozy. (tip of the cap to, who shared this article and whose gift article link you’re clicking)