A View from Abroad
I recently fulfilled a lifelong dream of attending the greatest tennis tournament in the world, otherwise known as Wimbledon. This was my first trip to London, and I found myself in awe of the people, the architecture, and the history.
Sadly, the U.K. is a little behind the U.S. when it comes to investing. Check out this excerpt from a recent interview with our peer and fellow evidence-based investor, Robin Powell.
Wendy Cook: What is the level of awareness of evidence-based investing in the UK compared to the US?
Robin Powell: Alas, Wendy, we’re way behind! A market historian was telling me the other day she believes it dates back to the Wall Street Crash. Professional investors in the U.S. had their fingers so badly burned in 1929 that they moved towards a more diversified (if not exactly passive) approach, while U.K. investors carried on as normal. Whether that’s true or not, indexing has definitely grown much more quickly in the U.S. since the 1970s than it has in the U.K. There’s a healthy skepticism about Wall Street among the American media and general public that sadly doesn’t exist over here. We’re still far too reverential towards the City of London and active fund management in particular, and it’s a similar story in Europe and most of the rest of the world. Things are changing, but slowly.