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I am sure that there's lots of numbers on this, but I wonder how much passive buy-and-hold investors affect the market.
For decades, lots of us have been getting the (good) advice of "find a low cost index fund, set up automatic contributions, and don't even think about it until ~10 years from retirement when you might want to start slowly converting to safer investments."
It occurs to me that, as much as I notice the markets as a news story, all of our invested money is in retirement account or college account index funds. I haven't even contemplated changing the balance of those.
Do the active institutional investors still have the power to move the markets like we think they do? Or is there a point at which there will be a disconnect between the underlying equities and their value based solely on so many people passively owning index funds?
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