3 ms·
One historical pattern is that when too much money chases one segment, something goes wrong. I am wondering what can go wrong with index funds!
by robocat 3y ago
One historical pattern is that when too much money chases one segment, something goes wrong.
I am wondering what can go wrong with index funds!
- Terr_ 3y agoIdeally, nothing, because there will be a negative feedback loop: Actively managed funds will act as predators to the herbivores, controlling their numbers, limiting how much everyone follows the crowd. That said, the history of human disaster often features a lot of places where someone didn't realize there was a positive feedback loop.