Had a discussion about the theoretical situation of everyone investing via index funds with my professor today. This situation would end in the stagnation of the share index, but I thought before that, there would occur price changes to the extreme in both directions because, in my head, everyone would buy and sell the same securities when investing via index funds. But my professor said, that the whole price index would simply increase and stagnate and that's that. Why would the *whole* thing increase?
Submitted November 20, 2018 at 06:38AM by ocp7n https://ift.tt/2zgmO7a
