Passive investors have 'fundamentally broken' the market, David Einhorn says

 "The value industry has gotten completely annihilated," David Einhorn said on the Masters in Business podcast.

He said fewer traders are paying attention to a firm's fundamental merits as passive investment has taken over.

Overvalued equities are gaining the most, as traders mainly chase after price.

The takeover of passive and algorithmic trading has made value investing significantly harder, with overvalued stocks now more likely to win out, Greenlight Capital founder David Einhorn said.

Algorithmic machine trading only compounds the issue, as quant traders heavily focus on short-term price moves, instead of a company's broader value, he said. As both passive and algorithmic traders chase after price, overvalued portions of the market are disproportionately bought. 

https://www.msn.com/en-us/money/savingandinvesting/passive-investors-have-fundamentally-broken-the-market-david-einhorn-says/ar-BB1hZbjZ


Indexfonder är en fara för aktiemarknaden och gör börsen till ”rena Solvalla”, enligt finansmannen Christer Gardell

Being wrong and alone is what gets asset managers fired.

So NOBODY KNOWS ANYTHING 

https://englundmacro.blogspot.com/2023/08/indexfonder-ar-en-fara-for.html


Den svenska fondbranschen lever gott på att förvalta drygt 6.000 miljarder kronor åt svenska hushåll och företag.

Hans Bolander DI 17 september 2022

https://englundmacro.blogspot.com/2023/08/det-samlade-fondvardet-uppgar-till.html


RE: Om fondbolagen tar en avgift på en procent skulle de få in typ 70 miljarder. Det kan de leva gott på.

https://englundmacro.blogspot.com/2024/01/svenskarnas-fondformogenhet-6929.html






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