tag:blogger.com,1999:blog-5433839636644874439.post6429945309297816187..comments2024-03-04T13:37:11.022+00:00Comments on Canadian Financial DIY: Passive Indexing Trend Leading to Increased Investment RiskCanadianInvestorhttp://www.blogger.com/profile/05645767559302303541noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-5433839636644874439.post-27710436907881399152011-09-12T19:35:01.739+00:002011-09-12T19:35:01.739+00:00This is an important topic. I'm glad you wrote...This is an important topic. I'm glad you wrote it up. I certainly believe that the popularity of passive investing has to affect the markets.<br /><br />I see a brighter future for index investing than what is suggested here. If 90 percent of investors followed passive strategies, the remaining 10 percent would be enough to keep the relative prices of different individual stocks in order.<br /><br />In the long run, passive investing will lower volatility. We need to educate passive investors of the need to adjust their allocations in response to valuation shifts. When this message gets out, both overvaluation and undervaluation will become logical impossibilities and market prices will become self-correcting. Price volatility will be reduced to a tiny fraction of what it is today.<br /><br />Good piece.<br /><br />RobRob Bennetthttp://arichlife.passionsaving.comnoreply@blogger.com