conversation: User (howsadley): "The WSJ reported that 60 mutual fund executives met on Nov. 2 for the "Seismic Shift Senior Leadership Forum" to discuss ways to stop clients from withdrawing their money. Executives say that there is downward pressure on managed fund fees."
  User (howsadley): "I monitor the news quite closely and noticed a recent trend of articles justifying active fund management and also of criticizing indexed funds, including calling them a bubble propping up prices on the S&amp;P. I think this is part of the strategy to "get the word out" in favor of actively managed funds."
  soverysmart (soverysmart): "I think even one of those articles mentioned that there are some who think that only 5-10% of the market needs to be active to efficiently price things."
  SaturdaysOfThunder (SaturdaysOfThunder): "It really doesn't even matter what % it "needs" to be. The market will work itself out. If suddenly tomorrow 100% of the people were indexing, there would be be big easy money to becoming a stock picker and very high paying jobs would be "created" to pick individual stocks, until the playing field leveled out until there was not much more money in picking stocks."
  soverysmart (soverysmart): "I don't disagree with that. I'm just saying that even articles that are worried about index funds provide the caveat that a mostly index fund market can still be efficient."
  