0 sats \ 0 replies \ @tomlaies 24 Jul 2022 \ parent \ on: The index mindset - John Luttig bitcoin
driving asset inflation
Indices driving asset inflation has pretty much been debunked:
  • If it was true we should se a cliff in valuations compared to profits between S&P500 and 501-1000. But there is none
  • It also makes no sense. When markets become less efficient (which would be the case from index distortion) the incentivization to arbitrage these inefficiencies away becomes greater.
  • index ETFs are insignificant for price action compared to active hedge funds or banks moving in/out of individual stocks.
write
preview