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
How often should you check your investment portfolio? Probably far less often than you do. The 56/44 daily split of up and down days in the stock market, combined with the human tendency to feel losses twice as keenly as gains, means daily checking is almost mathematically guaranteed to make you miserable. Ben Carlson's new book Risk & Reward sets out the evidence — and the practical moves that protect long-term investors from their own short-term instincts.
Robin Powell
May 228 min read
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