Don't index funds trail market changes though? I thought their allocations are reactive. In other words, the Mag 7 are being bid up by people trying to beat the market. I don't see how index funds could move prices.
I do understand how they can stabilize allocations where they are, which I think is the concern. Zombification rather than a positive feedback loop.
I do understand how they can stabilize allocations where they are, which I think is the concern. Zombification rather than a positive feedback loop.