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
Leopold Aschenbrenner had better access to AI than almost any investor. His hedge fund grew to $24bn in less than two years. Yet it collapsed not because his AI thesis was wrong, but because leverage forced him to sell. The AI investing risk his story reveals is one most investors overlook.
Robin Powell
Jul 314 min read
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