A critique of the claim that passive investing is a bubble

Re:A critique of the claim that passive investing is a bubble by rocqua on Thursday September 05, 2019 @02:55PM (#20889716)

Unless everyone has an evil twin, there is less chance of everyone wanting to exit X at the same time. Hence there won't be a run on X.

Moreover, if my evil twin a) owned a managed fund or b) sold in a slightly smarter way, then they would lose less on X due to liquidity.

Moreover, the hit on Xs price also has a slight hit on the ETF value. Hence there is a small positive feedback loop.

[ Parent | on HN ]

Re:A critique of the claim that passive investing is a bubble by vkou on Thursday September 05, 2019 @03:29PM (#20889974)

Everyone thinks they will be smart about their panic-selling when a market crash hits, but the reality is, most of them won't be... And the decision you should be making is not when to sell, but 'how much to buy'.

[ Parent | on HN ]