Free-Riding Investors Set up Markets for a Major Collapse

Yet there’s another parasite problem affecting markets that is harder to see and may be even more dangerous that the bank CEO free riders. This is the problem of “active” versus “passive” investors....A passive investor is a parasite. The passive investor simply buys an index fund, sits back and enjoys the show. Since markets mostly go up, the passive investor mostly makes money but contributes nothing to price discovery.

 

 

 

 

 

https://dailyreckoning.com/free-riding-investors-set-up-markets-for-a-major-collapse-2/

 

 

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