The Intrinsic Value Podcast - The Investor’s Podcast Network cover image

MI237: Are We In an Index Fund Bubble? w/ Eric Balchunas

The Intrinsic Value Podcast - The Investor’s Podcast Network

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The Criticism of Passive Investing

I think most of the concerns you can not worry about just take my word for it. I don't think ETFs are ruining fundamentals. There's definitely maybe a passive force that creates a little more momentum towards bigger stocks. But we've seen this year, bigger stocks can fall too. As long as there's volatility, stocks move in different directions,. they move off of news. And then your final point about weak hands is easy to defeat because look at any year the market's gone down in 2008, 2018, 2020, although it went back up. This year, each and every year, passive takes in money, ETS taking money, active loses money.

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