That's even worse, because the entire point of the stock market is supposed to be that investors choose where to put their money based on how the company is performing and what they're saying. I.e., you vote with your wallet, and the market therefore punishes bad behavior and rewards good behavior.

If everyone is passively investing, that no longer works. Then it's not even a market. We don't even know, for sure, if that works.

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TeMPOraL 4 days ago | parent | next [-]

It's gambling and we're already there. Hardly anyone cares about what any company does when investing in it; all that matters is whether it grows and whether you can time a jump elsewhere before it drops.

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RealStickman_ 4 days ago | parent | prev [-]

Investors are obviously bad a choosing where to invest. See any widely overvalued company

	▲	array_key_first 4 days ago \| parent [-]
		Right but those wildly overvalued companies become that way because millions of passive investors just mindlessly dump their money into them. If you use big index funds, you're the primary people contributing to Nvidia, Tesla, and openAI. You didn't start it, no, but you certainly propelled that ball forward like a bullet. And, well, that's fine, because we cant expect anyone really to actively invest. The problem is we don't know if this works. This definitely has the potential to blow up. You have to realize that what we're doing here is undermining the stock market at a conceptual level.