Re:Bogle Sounds a Warning on Index Funds
by walrus66 on Friday November 30, 2018 @11:17AM
(#18570128)
Ignoring the obvious controlling interest issues which others have mentioned, which is the largest issue...
That's a funny contradiction of a sort - then the index fund becomes the agent it's supposed to be observing.
For one, Blackrock is not Berkshire Hathaway - and in reality, obviously Blackrock can't wake up tomorrow and decide to be. They're not built for that.
Another scary thing is that the market is being increasingly turned into a derivative, and the underlying asset becomes more volatile (certainly for many different reasons) as it becomes proportionally smaller .
That's a funny contradiction of a sort - then the index fund becomes the agent it's supposed to be observing.
For one, Blackrock is not Berkshire Hathaway - and in reality, obviously Blackrock can't wake up tomorrow and decide to be. They're not built for that.
Another scary thing is that the market is being increasingly turned into a derivative, and the underlying asset becomes more volatile (certainly for many different reasons) as it becomes proportionally smaller .