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Diluting the index entry rules, only devalues the index utility. When it becomes a bigger problem, other indices with higher quality controls will out compete t
by manquer 6mo ago
Diluting the index entry rules, only devalues the index utility. When it becomes a bigger problem, other indices with higher quality controls will out compete the current ones and be used by asset managers seeking safety.
More likely than not, most of us are already holding stock in these companies one way or another. All the Mag 7 hold a major chunk of OAI and Anthropic stock anyway, slower entry does not make it less risky for us.
Even if the big tech companies did not hold any stock, they are still the biggest vendors and their own order books is hugely impacted by the AI demand from these two ( and others in this space), either way we are all in this together.
- qotgalaxy 6mo ago[dead]
- minraws 6mo agoI personally find this is the correct solution, since indexes are over-inflated either way, this brings much needed sanity to the index. Your index is now worth much more or much less based on how you view the AI bubble and you are forced to understand and correct your forward looking investments accordingly. Passive investments are good, but if taken too far as they clearly have been in the last decade they become a scam. Everyone is SIPing into it, and there is infinite liquidity. Until one big whale finally decides they are booking it, then all hell will break loose on the same damn day.
- chronc6393 6mo ago> When it becomes a bigger problem, other indices with higher quality controls will out compete the current ones and be used by asset managers seeking safety Doubt it. The world does not allow perfect competition.
- JumpCrisscross 6mo ago> world does not allow perfect competition What does this have to do with anything? Plenty of asset managers construct indices to save fees.
- ml-anon 6mo agolol imagine someone believing in the invisible hand of the free market in 2026
- manquer 6mo agoIn the short term there are distortions and inefficiencies. It may feel like free market is done . However in the long term, economics usually finds the most efficient way. Maintaining inefficient structures like tariffs or monopolies becomes more and more expensive and eventually untenable and disruptions will occur.
- farialima 6mo agoIn the long term we are all dead. (Keynes) Really feels like 1928