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
Bottom line up front: If you're choosing funds based on past performance, you're likely wasting your time and money. Comprehensive research spanning decades reveals that consistent outperformance among active fund managers is so rare it might as well be random chance — and the few exceptions typically reflect luck rather than skill. The investment industry loves to remind us that "past performance is no guarantee of future results," yet this disclaimer appears to fall on deaf
TEBI
May 26, 20256 min read
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