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
A sharp sector rotation has swept the US stock market, and the instinct is that a clever forecaster could have called it and cashed in. But experiments by Elm Wealth — first with finance graduates handed tomorrow's headlines, then with leading AI models — suggest that even perfect foreknowledge rarely makes an investor money. The deciding factor turns out to be not foresight but how much you choose to stake.
Robin Powell
Jun 279 min read
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