Sunday Spectacle CCXXVI

Rise of Indexes vs Stocks

Not sure what is counted as stocks in this graphic by Bloomberg but it's amazing that indexes outnumber stocks. That's beyond crazy. The number one function of stock markets, according to some theorists, is price discovery and wonder how much of that is lost due to the rise of indexes.

Wonder how these indexes are going to behave during a market correction or a crash.


source: "There Are Now More Indexes Than Stocks," Bloomberg, May 12 2017

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