there is always the risk that policy stabilization breaks — that incompetence or political constraint “nukes” the stock market. i’m not sure that’s a risk we want to compensate. 1/

index investing reduces compensation to active investors because the whole sector is a copycat. 2/

a small price increase in Stock A causes indexes to be under invested, causes them to buy more, accelerating the price shift, reducing the opportunity for the investors who brought information to market to exploit it. /fin