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AAPL and similar stocks do show their share price changing in response to financial announcements, sales numbers, etc. This concern is valid but I believe it o
by javagram 7y ago
AAPL and similar stocks do show their share price changing in response to financial announcements, sales numbers, etc.
This concern is valid but I believe it only prevents price movement once a much larger majority of the market is passively managed.
- deleted 7y ago[deleted]
- wutbrodo 7y agoI don't think it'd be much of a concern at a larger scale either. I stopped actively investing a long time ago because it wasn't worth my time, but if the market got to the point where it was responsive to reality, the increased returns would probably draw me back in. And before me would be institutional investors, picking up ~free returns. The system is designed to be self-equilibriating in this respect