Re:Vanguard Is Growing Faster Than Everybody Else Combined
by tryitnow on Wednesday April 19, 2017 @12:04PM
(#14148731)
It's been a looong time since I've studied financial economics but I do think there's an active research literature around this topic (under the topic of market microstructure maybe?).
If I recall correctly (and again, it's been a while), I think the amount of passive funds has to be quite substantial for markets to be really bad at reflecting value over the long run.
Re:Vanguard Is Growing Faster Than Everybody Else Combined
by L_Rahman on Wednesday April 19, 2017 @12:12PM
(#14148836)
And it's a recurring topic in Matt Levine's Money Stuff newsletter. The finance community is not only aware but actively thinking about the ramifications of the situation.
If I recall correctly (and again, it's been a while), I think the amount of passive funds has to be quite substantial for markets to be really bad at reflecting value over the long run.