'Benign Neglect' Sometimes Is the Best Strategy: Nir Kaissar

The video discusses the performance of the US stock market over the past decade, highlighting it as one of the best since the 1880s. It explores various theories on what drove market returns, such as the Federal Reserve's policies, high-growth companies, and stock buybacks, but concludes that broad-based earnings growth was the primary driver. The volatility of earnings compared to stock prices is examined, with historical data showing earnings are more volatile. The shift from active to passive investing is noted, with a significant flow of funds into low-cost products. The video emphasizes the importance of investor behavior, cautioning against chasing past returns and highlighting the benefits of passive investing.

What challenges do investors face in the upcoming decade according to the discussion?

What correlation does the speaker suggest exists between lower fee products and investor behavior?