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This is exactly how it will balance out. If this passes a threshold such that funds that take advantage of the phenomena will produce a meaningfully higher retu
by qaq 10y ago
This is exactly how it will balance out. If this passes a threshold such that funds that take advantage of the phenomena will produce a meaningfully higher return than index funds then money will start flowing into such funds balancing out the effect.
- nradov 10y agoNot just actively managed funds. There will always be proprietary traders speculating with their own or their employer's capital. As long as some kind of active investors make up ~10% of the market that will be sufficient for price discovery.
- 11thEarlOfMar 10y agoThat 10% will be insiders.
- sokoloff 10y agoWho better to know the prospects of a company?
- OscarCunningham 10y agoI don't understand how this is supposed to work. Won't active investing still be a zero-sum game? So on average won't they still be making the same as indexers?