Passive is like 50% of the markets now. I recall when they were only 15% a decade ago. A lot of the active fund publicly traded companies have been value traps. No matter how good their financials are
I wonder at what point do price dislocations become big enough that active investing becomes worthwhile again?
active is what impacts passive imo. active leads it, the issue is the breadth. the outperformance is reserve to a few that are good at dictating value.
effective of passive indexing to market is apparent on performance though. the larger the company the better the performance and its only gone a lot worse due to indexing to market cap.
the better question is who has the active money and how are they deciding. are they vc people open to scalable growth companies. value oriented folks that are profit based? quants that are momentum based? Crypto that is speculative based? Where is the new money coming from, and how do they choose how to invest their portfolio to traditional assets.