Oh, that's an interesting point about high frequency trading.
I think the question of what percentage of the market could be invested in index funds before things got weird is an interesting one. It really is hypothetical, though. Independent investors have more sway, not less, as an increasing number of people put money in index funds. There will always be a lot of people who are very rationally (and also depending on the investor... less rationally) unwilling to give that up.
I think the question of what percentage of the market could be invested in index funds before things got weird is an interesting one. It really is hypothetical, though. Independent investors have more sway, not less, as an increasing number of people put money in index funds. There will always be a lot of people who are very rationally (and also depending on the investor... less rationally) unwilling to give that up.