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
Most people think share owners are greedier, more selfish and more inclined to gamble than everyone else. Research across 11 countries finds that belief predicts who invests and who doesn't, and that it bears no relation to financial knowledge. Offered an identical bet, people took it when it was called a lottery ticket and refused it when it was called a share.
TEBI
Aug 314 min read
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