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We talked about this a little bit earlier, but I think another area of exploration is the fact that so many businesses in the United States and the economy used to be driven by assets, and now it is driven so much more by knowledge, by information, by data. The problem is not that companies used to be driven by assets and they're not anymore.
Even those who are activeinvestors reflect sentiment at depressed levels. It is owned by huge asset managers and this is the type of stock I love, one that does well over the long run. Some are large asset managers that specialize in factor investing. Some are large asset managers that specialize in factor investing.
Thanks to a combination of new clients and soaring financial asset prices, Interactive's client equity also climbed by 33% to $568.2 The raging bull market is also driving significant demand for margin loans , which investors use to buy stocks and other financial assets. It took the company's total client accounts to a record 3.34
Jamie Dimon's letter this week from JP Morgan Chase also addressed that idea of how big those passive investors are and what that means for the market, what it means for things like proxy statements that all of these decisions are being made mostly automatically now versus activeinvestors trading in and out of the market.
Investors who did not choose to overweight the Magnificent 7 would have struggled to beat the index because these dominant stocks outperformed the index by 23%! Investors in private assets with public market benchmarks would also have struggled with net value add in 2024. The S&P 500 was up 25% in 2024.
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