Why the "Index Fund Bubble" Is a Myth

A lot of people are worried about how index funds might affect the integrity of the stock market. At the extreme, people have even compared index funds to the collateralized debt obligations that sent the global financial market into crisis in 2008.

I am going to tell you why index funds are not creating a bubble.

Referenced in this video:
Are Index Funds Communist? - https://www.bloomberg.com/opinion/articles/2016-08-24/are-index-funds-communist
'Big Short' investor Michael Burry explains why a wildly popular investing vehicle reminds him of the rotten securities that once crashed the economy - https://markets.businessinsider.com/news/stocks/big-short-investor-michael-burry-compares-index-funds-to-cdos-2019-9-1028497876
A Common Sense Confession: I’ve Been Unfaithful to Market-Cap Weighting - https://www.pwlcapital.com/common-sense-confession-unfaithful-market-cap-weighting/
Index Investing Supports Vibrant Capital Markets - https://www.blackrock.com/corporate/literature/whitepaper/viewpoint-index-investing-supports-vibrant-capital-markets-oct-2017.pdf
Setting The Record Straight: Truths about indexing - https://personal.vanguard.com/pdf/ISGBEL.pdf
On the Impossibility of Informationally Efficient Markets - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=228054
Disagreements, Tastes, and Asset Prices - https://www.sciencedirect.com/science/article/abs/pii/S0304405X06001954
Passive Asset Management, Securities Lending and Stock Prices - https://www.law.nyu.edu/sites/default/files/Paper_P%26S_Darius.pdf

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