This weekend’s Barron’s had a great interview with Jack Bogle of Vanguard. Jack took on some of the more popular myths about the index revolution, including the one where people accuse the popularity of ETFs and the like for pushing up the values of the top ten stocks.
Which is actually illogical when you think about it. Wouldn’t those flows be more meaningful to the thousands of smaller stocks that are also being “bought indiscriminately”? And why, then, are there stocks that were in the top ten recently that have fallen so hard if easy money is just flowing in to buy everything?