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
Wealth can buy security, freedom and choice. What it cannot do is address the purpose of financial planning: telling you when to stop. New behavioural research commissioned by Y TREE finds that the most driven wealthy people report both the highest life satisfaction and the highest anxiety, a reminder that knowing what money is for may matter as much as growing it.
Robin Powell
Jul 219 min read
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