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
In a new experiment, 3,700 people chose between two index funds tracking the same index. One of them paid more in every possible outcome. When a chatbot was told to promote the worse fund, the share of people getting the choice right fell from 64 per cent to 34 per cent. Telling them the bank had money riding on their answer made no difference at all. A survey of 836 UK retail investors, published in July by Opinium, found that 54 per cent had already used AI to look up inves
TEBI
2 days ago4 min read
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