No such thing as too many passive investors: Allison Schrager
In this piece from Allison Schrager, the dominance of passive investing and its implications for market efficiency are explored. With over 50% of Americans' investments in passive funds, a significant shift has occurred from active management, raising concerns about market dynamics and the potential risks of under-informed capital allocation. The discussion spans the theoretical foundations of market efficiency, the role of active investors in maintaining this efficiency, and the potential for passive strategies to inadvertently create bubbles or stifle innovation. The article also considers the viewpoints of finance experts and the balance needed between passive and active investments to ensure markets continue to function effectively.
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By Allison Schrager
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