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
The reason why so many people receive poor financial advice is the same reason why so many of us overpay for car repairs. Simply put, we lack the basic knowledge to distinguish good advice from bad. A phrase we keep reading is the “advice gap”. And I get it. It’s a big problem I’ve written about many times. Only a tiny fraction of the UK population receives financial advice. The Retail Distribution Review, for all the good it has done, has only widened the gap further, as
Robin Powell
Nov 13, 20244 min read
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