The argument of active versus passive is not a new one, but with US$700 billion of capital flowing from active managers to passive managers in under a decade in the US, the passive argument would appear to be on the front foot for now. However, in this Bloomberg piece, Luke Kawa reviews some research by Bernstein that not just questions its efficacy, but makes the case that the rise of passive asset management threatens to fundamentally undermine the entire system of capitalism. Bernstein wrote: "A supposedly capitalist economy where the only investment is passive is worse than either a centrally planned economy or an economy with active market led capital management". Story here: (VIEW LINK)