> When it becomes a bigger problem, other indices with higher quality controls will out compete the current ones and be used by asset managers seeking safety
replyDoubt it.
The world does not allow perfect competition.
lol imagine someone believing in the invisible hand of the free market in 2026
replyIn the short term there are distortions and inefficiencies. It may feel like free market is done .
replyHowever in the long term, economics usually finds the most efficient way.
Maintaining inefficient structures like tariffs or monopolies becomes more and more expensive and eventually untenable and disruptions will occur.
In the long term we are all dead. (Keynes)
replyReally feels like 1928
I personally find this is the correct solution, since indexes are over-inflated either way, this brings much needed sanity to the index. Your index is now worth much more or much less based on how you view the AI bubble and you are forced to understand and correct your forward looking investments accordingly.
replyPassive investments are good, but if taken too far as they clearly have been in the last decade they become a scam. Everyone is SIPing into it, and there is infinite liquidity. Until one big whale finally decides they are booking it, then all hell will break loose on the same damn day.
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