Re:Why Index Funds Are Like Subprime CDOs
by mrep on Thursday September 05, 2019 @10:58AM
(#20887346)
> Jack Bogle's view was that if the market is 50%+ passive indexed that would be bad news.
According to this source, it already is [0]. HN discussion at the time [1].
[0]: https://qz.com/1623418/index-funds-now-account-for-half-the-...
Jack Bogle's view was that if the market is 50%+ passive indexed that would be bad news.
Some folks argue that the number is even more extreme, that passive indexing generally increases efficiency, and that as long as there are even a handful of active investors, the market will still be efficient: http://www.philosophicaleconomics.com/2016/05/passive/
The same author had another thought-provoking argument that the popularity of indexing has probably driven up stock valuations: http://www.philosophicaleconomics.com/2017/04/diversificatio...