Doesn’t this only hold as long as relatively few people are pursuing this strategy?
It takes relatively few active investors to keep prices in line by having opinions on what the prices of various stocks should be. We have way more than enough right now. Also, it should be noted that the S&P 500 represents about 70% of the value of all publicly traded US equities, so it’s essentially an investment in the economy as a whole.
It takes relatively few active investors to keep prices in line by having opinions on what the prices of various stocks should be. We have way more than enough right now. Also, it should be noted that the S&P 500 represents about 70% of the value of all publicly traded US equities, so it’s essentially an investment in the economy as a whole.