Index Funds Have Officially Won(morningstar.com)
morningstar.com
Index Funds Have Officially Won
https://www.morningstar.com/funds/index-funds-have-officially-won
2 comments
One historical pattern is that when too much money chases one segment, something goes wrong.
I am wondering what can go wrong with index funds!
I am wondering what can go wrong with index funds!
Ideally, nothing, because there will be a negative feedback loop: Actively managed funds will act as predators to the herbivores, controlling their numbers, limiting how much everyone follows the crowd.
That said, the history of human disaster often features a lot of places where someone didn't realize there was a positive feedback loop.
That said, the history of human disaster often features a lot of places where someone didn't realize there was a positive feedback loop.
The title of this article makes me feel more and more, that we are faced with a mid-term peak. Maybe even longer than mid-term.