> The entire system just helps big companies become even bigger and even more anti competitive. Even just due to their existence (being large and existing). Passive investing is good for the general person but also makes this concentration worse and keeps capital away from smaller companies.
No. There's still plenty of active money doing price discovery; you can't attribute this market concentration to the rise of passive. (And this is self-correcting; as the share of active money shrinks, the reward to active investors for price discovery grows.)
The market is concentrated because that's where active money thinks the future profit is.
No. There's still plenty of active money doing price discovery; you can't attribute this market concentration to the rise of passive. (And this is self-correcting; as the share of active money shrinks, the reward to active investors for price discovery grows.)
The market is concentrated because that's where active money thinks the future profit is.