Re:A critique of the claim that passive investing is a bubble
by jonknee on Thursday September 05, 2019 @03:35PM
(#20890012)
Yes, if indexes sell off any many times their average daily volume that means components will as well. That's fine. If something happens where people are selling the S&P 500 down 20% in a single trading session (the full day circuit breaker limit) there should be chaos amongst the components because shit has hit the fan. Savvy players will scoop up deals, most people will do nothing and life will move on.
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