UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next
Author: Viznut Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76397  
Subject: Percentage of Market in Index Funds Date: 8/13/2005 8:19 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Does anyone know where to look to find out what percentage of US/int'l stocks and bonds are held by index funds?

I'm an indexing proponent, and my entire retirement portfolio save my current 401K is in index funds. But I'm a little concerned that down the road if a significant percentage of all market assets are tied up in index funds, that we're in for a hypersensitive market with fragile prices due to all the indexing people reacting to each other's laziness and not the business fundamentals.

Aren't most market indicies are based on market cap (share price * num shares -- i.e. what people "think" the business is worth) rather than some fundamental measure of the business (book value, cash flow, discounted future cash flow, etc.).

If so, then it intuitively seems to me that this is a problem with indexing. Thoughts?
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.