
MI237: Are We In an Index Fund Bubble? w/ Eric Balchunas
The Intrinsic Value Podcast - The Investor’s Podcast Network
Index Funds Affecting Price Discovery
Indochino: Indexing has become more popular and index funds are growing in terms of assets under management. He says as passive grows, it's possible stocks could be more volatile because there's less actual active people using them. Indochino: I think the Fed killed a little bit of price discovery and volatility by raising interest rates.
IN THIS EPISODE, YOU’LL LEARN:
- 08:42 - How index funds affect the underlying companies’ stock prices.
- 21:31 - What single-stock ETFs are, what investors should know about these products.
- 24:11 - Are inverse ETFs a good way to bet against the market?
- 24:11 - The risks of using leveraged ETFs and why they may not perform as you expect.
- 29:17 - Why passive indexing is sometimes viewed as “weak hands” or “dumb money”.
- 36:34 - Are we in a passive indexing bubble?
- 48:53 - Eric’s thoughts on Cathie Wood’s criticisms of ETFs calling them a “misallocation of capital”.
- 50:54 - Is now the worst time to be a passive index investor?
- And much, much more!
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
- Check out Eric’s book, The Bogle Effect.
- Check out Bloomberg’s podcast, Trillions.
- Bloomberg’s show, Bloomberg ETF IQ.
- Related Episode: The Bogle Effect w/ Eric Balchunas - MI167.
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