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Getting Rich Quick (EP.285)

Animal Spirits Podcast

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Index Funds Are Defeating Markets, Right?

How many marginal traders do you really need to set prices? That's a fair argument. But look at this next chart, ownership of the US equity market. If you just look at the fund industry, it looks like index funds are swallowing it whole. The household thing is because someone like Jeff Bezos owns billions of dollars of Amazon and CEOs and they own all these individual shares. So households themselves dwarf that.

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