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Is it possible for too much money to be in funds that automatically allocate based on company value? Imagine if 90% was in index funds like the S&P - would that
by jammygit 7y ago
Is it possible for too much money to be in funds that automatically allocate based on company value? Imagine if 90% was in index funds like the S&P - would that distort the accuracy of the market?
- Bombthecat 7y agoI'm pretty sure.and I'm pretty sure that pension finds already changed market dynamics and price isn't accurate anymore...
- kiran-rao 7y agoThe limiting factor is leverage. If a hedge fund (or equivalent) had enough data and confidence in a company, they would borrow money to increase their position size. This would make it possibly to affect price for non passive investors.