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
he most careful expert forecast of AI's economic effects covers GDP, productivity, employment and inequality. It does not cover share prices. Across 21 developed markets and 120 years of data, economic growth has shown no reliable positive relationship with what shareholders earn. What has correlated is growth in earnings per share, and four mechanisms separate the two. Here is what the evidence says about AI and stock returns, and what the railways and the dot-com boom alrea
TEBI
Aug 410 min read
SUBSCRIBE
Simply provide your email address to receive our regular update.
