3 ms·
As the article days, as index investing becomes more prevalent then the potential profits from price discovery also increases. This should lead to more active i
by HappyTypist 11y ago
As the article days, as index investing becomes more prevalent then the potential profits from price discovery also increases. This should lead to more active investing, correcting the imbalance.
Ultimately, index investing returns (before fees) should equal or nearly equal aggregate active investing returns (before fees). This makes index investing /always/ being a better option.
- meric 11y agoThe additional profit from active investing and price discovery will come from timing a market where momentum from index funds has clearly overshot fair value to risk. I think we're over that point, or perhaps I'm rationalising my own active investment.