US markets are doing much better than markets everywhere else, but no one seems to know why. Yes, there are theories: Perhaps it’s the promise of AI, although it remains to be seen how AI will play out and who will profit. Or maybe valuations are high, and the market will come down. Or … could it be that markets are doing better because no one is really thinking about them all that much?

I know I’m not — because I own passive index funds. And I am not alone. In January, the share of money in passive funds was more than 50%. In 2010, that figure was between 30% and 40%, depending on how you measure it. It could be that markets keep rising because we passive investors just keep buying stocks no matter what the information says.

QOSHE - Too Many Passive Investors? There’s No Such Thing - Allison Schrager
menu_open
Columnists Actual . Favourites . Archive
We use cookies to provide some features and experiences in QOSHE

More information  .  Close
Aa Aa Aa
- A +

Too Many Passive Investors? There’s No Such Thing

9 21
18.04.2024

US markets are doing much better than markets everywhere else, but no one seems to know why. Yes, there are theories: Perhaps it’s the promise of AI, although it remains to be........

© Bloomberg

Get it on Google Play