Re:A critique of the claim that passive investing is a bubble
by rocqua on Thursday September 05, 2019 @03:54PM
(#20890141)
Arbitrage (as done by APs) is mostly about gathering an instantaneous spread. Much like market makers, that strategy is not about holding a position.
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Re:A critique of the claim that passive investing is a bubble
by jonknee on Thursday September 05, 2019 @04:02PM
(#20890199)
Yes, but strategies change in a crash. It's possible no one learned from the 2015 flash crash, but I bet a lot of smart funds out there are ready for one. If a dumb AP is going to put out a crazy price someone is going to be there to snap it up.