I think the random walk thing is done. The last few years has seen managed funds outperforming. ETF's have given away their virginity and are pushing managed funds. Do we really need more S&P 500 index funds?

Buffett agrees with you. He thinks indexing is the best for the average Joe. Meanwhile he obliterates it with Berkshire Hathaway. You could have that as your only asset and stay ahead of the index. And that has gone on for over 50 years.

I have beat the S&P 8 of ten years. The two down years were just slightly lower. It's not that hard! If you could buy the S&P and discard the "worst" 100 stocks you would win. It is not hard. Indexing is already a problem in terms of the ETF's moving the market by sucking up funds just for the reason they are on the list of things they have to buy, not because they are "wonderful businesses."