Stage 1. Stock broker. Modus operandi: stock picking (wizard behind the curtain: sell side research).
Stage 2. Financial advisor. Modus operandi: mutual fund picking - picking the pickers (wizard behind the curtain: institutional stock pickers).
Stage 3. ETF picking - picking your index (wizard behind the curtain: index makers).
The stages are cumulative and not mutually exclusive.
And so we have an environment today where there are stock brokers recommending stocks for individual clients, financial advisors picking mutual funds and ETFs for individual clients, mutual fund managers picking stocks for their investor pool, ETF marketers packaging indexes for their investor pools, and individual investors picking and choosing from all options available.
No comments:
Post a Comment