Over decades, index funds have delivered superior returns and surged in popularity. But some claim the rise of passive investing has come at the cost of less competitive markets and inflated prices for consumers. We look at the evidence that common stock ownership might harm economic efficiency.

And in today’s Dumb Question of the Week: How high would bond yields have to go for you to sell your stocks?

Selected links

• How Index Funds May Hurt the Economy - The Atlantic
• Anti-Competitive Effects of Common Ownership
• The Perils of Common Ownership: The Flooding Phenomenon
• Martin Schmalz: How passive funds prevent competition
• Index Investing and Common Ownership Theories | BlackRock

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Disclaimer

This podcast is for informational and entertainment purposes and is not financial advice. We do not provide recommendations or endorse any decision to buy, sell or hold any security. We cannot be held responsible for any actions listeners may take and investors are encouraged to seek independent financial advice.

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