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> day traders and market makers are responsible for making economies for efficient and providing price discovery Price discovery of a price that's only useful
by bandrami 9y ago
> day traders and market makers are responsible for making economies for efficient and providing price discovery
Price discovery of a price that's only useful to other baseball card collectors^H^H^H^H^H^H sorry, market traders.
I'm not surprised everybody is missing the biggest advantage of index investing: it gets you a diverse collection of income-producing assets.
- lend000 9y ago> I'm not surprised everybody is missing the biggest advantage of index investing This isn't about whether index investing is a good strategy for many people, especially those with low-moderate risk appetites and no time/expertise for active investing or trading. It's about whether or not index investing makes markets and economies more efficient (which the article erroneously claims). I claim they have the opposite effect, but they create value in and of themselves that counteracts that distortion to the benefit of index fund users (and to the benefit of traders who arbitrage the distortion).