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Index funds / ETFs / passive investing could be creating a financial bubble

By Hicbd
Fri Jul 17 2020 9:36 am

"And now passive investing has removed price discovery from the equity markets. The simple theses and the models that get people into sectors, factors, indexes, or ETFs and mutual funds mimicking those strategies -- these do not require the security-level analysis that is required for true price discovery."

URL:
https://www.bloomberg.com/news/articles/2019-09-04/michael-burry-explains-why-index-funds-are-like-subprime-cdos
https://bestinterest.blog/index-fund-bubble/
https://money.usnews.com/investing/funds/articles/do-index-funds-etfs-quietly-pose-a-systemic-risk-michael-burry-thinks-so

URL Credit

Categories:
Financial Systems / Markets Financial Advising / Planning / Wealth Management Investing / Portfolio Management Economic Bubbles / Recessions

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