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One additional thought is as individuals enter the workforce they’re told to invest in a 401k. I’m assuming most people put their contributions into passive inv
by hahla 4y ago
One additional thought is as individuals enter the workforce they’re told to invest in a 401k. I’m assuming most people put their contributions into passive investments. Over the long run I wonder if this is significant enough to lead to a cycle where stock prices always go up.
- kqr 4y agoThis is what the article is saying. As long as everyone else keeps doing that, it will be a good idea for me to do it too. But when fashion changes and it is hip and cool to do something else, it will be much harder to get out of the top 500 companies because nowhere near as many people will be buying.
- bthrn 4y agoOn the other side you have people in retirement drawing from their 401ks. The population imbalance probably works in the market’s favor now, but that might not always be the case.