Plunge is good news for everyday investors
Instead of drifting down a couple of per cent each week for two months, the market reprices instantly. The move looks larger, but it’s simply faster. Think of it like ripping off a band-aid. Quick and painful, but over straight away.
That edge of slow drift is gone. With fewer retail investors trading the market, and more money flowing passively, news is priced in immediately. If Woolworths misses, it’s down 15 per cent that day. If Coles beats, it’s up 9 per cent. No lag. No free lunch for the pros.
Without ETFs and index funds, you’d still have a market where slow retail money was easy prey for the pros.
The S&P SPIVA Australia scorecard backs this up. Decade after decade, fewer active Australian share managers are beating the…
