Yeah I think the consensus is that 100% passive would be terrible.
Jack Bogle's view was that if the market is 50%+ passive indexed that would be bad news.
Some folks argue that the number is even more extreme, that passive indexing generally increases efficiency, and that as long as there are even a handful of active investors, the market will still be efficient: http://www.philosophicaleconomics.com/2016/05/passive/
Jack Bogle's view was that if the market is 50%+ passive indexed that would be bad news.
Some folks argue that the number is even more extreme, that passive indexing generally increases efficiency, and that as long as there are even a handful of active investors, the market will still be efficient: http://www.philosophicaleconomics.com/2016/05/passive/
The same author had another thought-provoking argument that the popularity of indexing has probably driven up stock valuations: http://www.philosophicaleconomics.com/2017/04/diversificatio...