Index stock bubble

One of his most provocative views from a lengthy email interview with Bloomberg News on Tuesday: The recent flood of money into index funds has parallels with the pre-2008 bubble in collateralized The boom in passive investing has led to an unintended consequence. As more and more investors buy into the S&P 500 by purchasing the exchange-traded funds or mutual funds that track this index Passive investments such as index funds and exchange-traded funds are inflating stock and bond prices in a similar way that collateralized debt obligations did for subprime mortgages more than 10 To Burrey’s point – index funds are indiscriminate buyers – they don’t care about price discovery or the value of a stock so their naive contribution to market consensus is what is creating the bubble or the over-valuation in these stocks.

To Burrey’s point – index funds are indiscriminate buyers – they don’t care about price discovery or the value of a stock so their naive contribution to market consensus is what is creating the bubble or the over-valuation in these stocks.

A stock market bubble is a type of economic bubble taking place in stock markets when market participants drive stock prices above their value in relation to some system of stock valuation. Behavioral finance theory attributes stock market bubbles to cognitive biases that lead to groupthink and herd behavior. Find the latest stock market trends and activity today. Compare key indexes, including Nasdaq Composite, Nasdaq-100, Dow Jones Industrial & more. So when Burry and others call indexing a bubble, I suspect their primary complaint is that investors are blindly pouring money into index funds that track the broad U.S. stock market and are thus One of his most provocative views from a lengthy email interview with Bloomberg News on Tuesday: The recent flood of money into index funds has parallels with the pre-2008 bubble in collateralized The boom in passive investing has led to an unintended consequence. As more and more investors buy into the S&P 500 by purchasing the exchange-traded funds or mutual funds that track this index

One of his most provocative views from a lengthy email interview with Bloomberg News on Tuesday: The recent flood of money into index funds has parallels with the pre-2008 bubble in collateralized

Learn about the ETF and passive indexing bubble and how it will lead to another China's Housing & Debt Bubble · The U.S. Stock Market Bubble · The  When you say the term "index bubble," that has different meanings for different people. What people are arguing is that indexing has done so well and become so popular that it won't do as well in Your portfolio is probably heavy on index funds. Now may be the time to make changes. Index funds have become hugely popular, and they account for a large following in 401(k)-style retirement plans.