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Index Funds May Harm the Economy

12 点作者 joshjkim大约 4 年前

1 comment

srndsnd大约 4 年前
While I think this article does a great job of highlighting what the dangers of the consolidation of power inherent to the growth of index funds, I&#x27;m not certain it captures the whole picture behind why exactly they&#x27;ve become the dominant investment vehicle of choice.<p>I don&#x27;t need to rehash any discussion of low interest rates, QE infinity, and housing prices here. But I wonder if an increase in interest rates &#x2F; treasury yields would marginally drive capital out of index funds to mitigate the problems the author discusses. The money must move or slowly decay, but where else can it go?