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I've read people who theorise that as index funds grow larger their shortcomings increases the rewards for more active traders who now have more opportunities a
by kirrent 10y ago
I've read people who theorise that as index funds grow larger their shortcomings increases the rewards for more active traders who now have more opportunities available that aren't being taken advantage of by those index funds, no matter how closely and quickly they track a given index. Presumably that theory would lead to some equilibrium between the two investing styles.
- warcher 10y agoI'm crossing my fingers for the ol invisible hand evening this whole thing out-- Wall Street takes a haircut on fees until they reach pricing equilibrium. It's not like financial analysts are without value. I just don't know if they deliver the value they extract. Bogle made a pretty compelling argument that they do not. Is there a doomsday scenario, haha?