Interesting Prediction about Indexing

[FREE866]

Given I'm all in major market indexes I admit I'm totally biased and agreed with this response to Burry's predictions

https://awealthofcommonsense.com/201...a-bubble-myth/

[jazz4cash]

I see more risk in the adoption of mutual funds in general with the inherent disconnect between shareholders and the companies they invest in. I think Fidelity gets to vote on my behalf on all shareholder matters.

[Elbata]

Quote:

Originally Posted by frayne Just for the sake of argument say Burry is correct, how would you posture your equity investments that were in index finds ?

Michael Burry's my hero. What a fascinating story he is. I'm surprised by his call, but I ask myself too, where do I put my money if not in stocks? I'm somewhere ~50/50 Bonds/Stocks. On this one, I'm letting my Vanguard accts stay the course.

[audreyh1]

Quote:

Originally Posted by FREE866 Given I'm all in major market indexes I admit I'm totally biased and agreed with this response to Burry's predictions https://awealthofcommonsense.com/201...a-bubble-myth/

That was a good article, thanks. That's pretty much how I see it. The active investors are creating all the volume, and that's where the price discovery (i.e. speculation) happens. Index funds contribute little to volume.

The stock market goes through periods where nearly everyone rushes to the exits including professionals/active traders chased by margin calls which brings down the "good" stocks with the bad. This happens regardless of index funds. Remember 1987?