No. of Recommendations: 2
When it comes to the stock market, I am a firm believer in the concept of the self-defeating prophecy. ANY investment strategy or theory, if and when it becomes too popular, is doomed to failure - further, doomed to somehow contribute to or cause its own failure. This includes the efficient-market theory, which is already sufficiently popular to degrade the efficiency of the financial markets.

What this article is saying is that perhaps the S&P500 is now too popular. But they want everyone to adopt a different theory - simply replacing the S&P500 with the Wilshire 5000. The result will be too many people following the Wilshire 5000, degrading its value while the S&P500 regains some of its value.

(What happens when too many people buy into the concept of the self-defeating prophecy?...)
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