sailingtundra

What do you see as the long term repercussions of continued outflows from active management to passive instruments like ETFs?

How will markets function if fewer and fewer participants are actively picking stocks rather desiring a cross-sectional slice of the whole pie? If less people are buying/selling the underlying securities how would markets continue to price value into equities?

Thanks for your reply. I guess the follow up to that is, do you see an issue with the declining number of IPOs in global capital markets? What remedies do you think should be enacted to encourage more companies to go public?