Why is this everyone's go to when trying to discount someone about stocks? It isn't like the market isn't due for a serious correction but I never gave a date. If I knew when, then sure, I would!
I have my money where I believe it's best and you probably have the same. I'm just here discussing. Not telling anyone what to do. As I said in the other comments around this, I meant passive as a whole. I guess I shouldn't have said just those two.
You're reading my comment wrong then. You made a very assertive conclusion with zero precedence or sources to back the claim up. Without that it's simply conjecture. So I'll have to ask again...is your position on this so strong that you're willing to put money down? If not, then, uh, show us evidence, maybe? Otherwise, it's more helpful to a discussion to state it is an opinion, rather than as a truth.
So how does a company reach S&P500 status in the first place? Yup, you guessed it, physical people have to place orders based on financial fundamentals. For reference, Facebook's PE ratio when it IPO'd was 85: https://en.wikipedia.org/wiki/Initial_public_offering_of_Fac...
> and robotraders.
Betterment is $10B AUM and Weathfront is $8B AUM. Those are considered the two largest robotraders and they are a blip in the $7T AUM of the S&P500 (roughly 0.2% assuming they have all of their assets in the S&P 500).
> They are auto buying into these companies without considering financials or anything else.
So who set the price when the auto buyers didn't' exist?
> it's going to pull the entire market down.
Great! Guess what, you can short the market if you'd like and make a ton of money if you're right!