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
Ever notice how financial bad news grabs your attention more than good news? There's a reason — it's called negativity bias — and it's costing investors real returns. Here's what the science says.
Robin Powell
Sep 12, 20257 min read
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