Passive Indexers Still A Rare Breed?

The video discusses passive indexing, highlighting that true passive investing involves owning a market portfolio, which is a weighted average of all financial assets. Despite the growth of indexing, most investors actively build portfolios due to factors like home country bias and market inefficiencies. The market portfolio, a concept from the 1950s, is considered efficient but has assumptions that may not reflect reality. Investors often deviate from it for valid reasons, adapting to changing market conditions.

What is the concept of passive indexing and how has it evolved in the context of global equity markets?

How do factors like home country bias influence investment decisions?

Discuss the reasons why investors might deviate from market cap indexing.

Explain the significance of the market portfolio in modern portfolio theory.

What are the assumptions of the market portfolio model, and why might they not reflect reality?