Top Wealth Management Strategist on Passive Investing

Excerpt from a session of ExecuNet Master Class, What Top CEOs and Investors Are Asking in 2017, in which one of the top wealth management strategists in the country, Dan Skelly, Executive Director of Morgan Stanley, spoke with ExecuNet about the state of the economy.

ExecuNet: You spoke favorably about passive investing earlier. Please explain if you think it will continue to be a good strategy.

Dan Skelly: One of the big trends in the market recovery of the last 7-8 years has been a massive shift by investors from more actively managed funds to index funds, cheap ETF funds, and passive investing. A lot of that tends to be herd mentality, chasing what’s worked in the past. And the cheaper fees is a big plus for passive investing. But passive investing worked so well in that time period because people were so focused on monetary policy. Dan doesn’t expect the next few years will look like the last several; volatility will surely increase. Now, the Fed is unwinding its stimulus, same in Europe. That will allow for active management to start to do better.

Dan is projecting 10% upside in the US and even more overseas in Europe and emerging markets, with Japan becoming interesting again.



William Flamme

William Flamme

William Flamme is ExecuNet's Marketing Content Manager, where he is responsible for developing engaging career, job search, and leadership insight and delivering executive-level content across the various properties under the ExecuNet brand. Prior to joining ExecuNet in 2008, Will earned a master's degree in education and taught fifth grade and sixth grade. As a teacher, he deepened his appreciation for the written word and mastered skills necessary for managing writers who sometimes view deadlines as homework.

No Replies to "Top Wealth Management Strategist on Passive Investing"