Money For the Rest of Us · Wednesday, October 28, 2026
David detailed how money flowing from active managers into price-insensitive index funds forces active managers to sell their holdings, including high-conviction ideas. Meanwhile, index funds concentrate capital into the largest market names like the Magnificent Seven, driving up their prices.
“Whereas an index fund manager, they're getting money in and they're buying the market, which means more money is going into the biggest names and that's pushing up their prices.”