Warnings that index funds have broken the stock market all imply a threshold: a share of the market at which price discovery fails. Nobody making the argument names it. Owen Lamont, writing in the Financial Analysts Journal, argues that no such number exists short of complete passive ownership, and that what actually determines whether prices stay informative is who is left doing the trading. His case, the strongest peer-reviewed research against it, and what the performance
Most fund manager AI systems operate on autopilot, closely tracking the index while charging premium fees for active management. If your portfolio is essentially running itself, why are you paying someone to sit in the cockpit?
Robin Powell
Apr 209 min read
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