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Serious question: what happens when everyone invests in index funds? Would appreciate if one can point to research related to this scenario
by quietthrow 8y ago
Serious question: what happens when everyone invests in index funds?
Would appreciate if one can point to research related to this scenario
- badpun 8y agoThe logical conclusion seems to be that individual stock picking becomes more attractive (there are overperforming stocks, but the vanguard funds can’t take advantage of it).
- LUmBULtERA 8y agoThis -- you'd expect that actively managed funds would start, on average, to give better performance than the low-cost passive indexes. In the long-run this would likely reach an equilibrium where, on average, results are comparable -- minus fees. We are not there yet. Maybe we never will, because reasons.