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This is true, but it also means that they don't fall as much. No matter what the results, the index funds will not sell, so it means the market doesn't change a
by megaremote 8y ago
This is true, but it also means that they don't fall as much. No matter what the results, the index funds will not sell, so it means the market doesn't change as much.
- darawk 8y agoThat's sort of true, but it's an over-simplification. People with capital and conviction can still short heavily. What it does is dampen the emotional swings of retail investors. So, for the market as a whole, volatility should go down as indexing becomes more popular.