Passive investment blamed for inflating stock market bubble

 Research suggests index funds have insulated US equities from threat of a sustained bear market

The trillions of dollars that have flooded into passive funds in recent years have inflated valuations, radically reshaping the US stock market 

The Shiller p/e measure has risen sharply since 2003, however, and now sits at a record high 38 times.

"New opportunities will arise for active market participants and the pendulum will begin to swing back in the other direction.”

Steve Johnson FT 27 September 2021

https://www.ft.com/content/994bdda8-b704-4e4c-9b19-4e0021f0b309

NOBODY KNOWS ANYTHING

Don’t we still need active management to pick stocks?  What happens if we all just become index investors?

https://englundmacro.blogspot.com/2021/09/nobody-knows-anything.html