4 ms·
Yeah - it took like the first paragraph to realise he was taking the piss... people should really read beyond the title.
by alexgmcm 8y ago
Yeah - it took like the first paragraph to realise he was taking the piss... people should really read beyond the title.
- ucaetano 8y agoIt isn't just the title, 2/3rds of the article are about index funds: > Are Index Funds Communist? > But when those thoughtful active analysts are replaced with passive index funds, the market stops serving that function. > Indexing is cheaper, yes, but that's because active management has positive externalities, and if no one will pay for it, those benefits will disappear. > But more fundamentally, there is an alternative view that the rise of passive investing will improve capital allocation > The passive investors can't influence relative prices > Their worry is that the growth in passive and quasi-passive products > Or I guess pure indexing -- everyone passively throws money at everything that there is, with no judgment at all -- is an imaginable fourth answer, and is strictly worse than the others.
- deleted 8y ago[deleted]