"At some point, it raises the question of what actually is the market. If everyone is buying stocks based solely on their market value, how is that value actually being set?"
…
"According to research by Hendrik Bessembinder, professor of business and finance at Arizona State University’s W.P. Carey School of Business, over the 55-year period from 1971 through 2025, an equal-weight strategy beat the traditional value-based index approach by an average of 1.3 percentage points a year, or 12.6% to 11.3%. As the proponents of index funds repeatedly argue, such differences really make a big difference over time."
I'm doing 65% FXROX and 35% FZILX in a retirement account should I switch it up :)
"When everyone indexes, what is the market?
"At some point, it raises the question of what actually is the market. If everyone is buying stocks based solely on their market value, how is that value actually being set?"
…
"According to research by Hendrik Bessembinder, professor of business and finance at Arizona State University’s W.P. Carey School of Business, over the 55-year period from 1971 through 2025, an equal-weight strategy beat the traditional value-based index approach by an average of 1.3 percentage points a year, or 12.6% to 11.3%. As the proponents of index funds repeatedly argue, such differences really make a big difference over time."