It's Over: The Stock Market Bubble Just Popped

"according to Michael burry the investor who constantly deletes his Twitter account and predicted the 2008 subprime loan crisis as featured in the movie The Big Short says that index funds are artificially inflating the price of the stock market because people are driving up those values through investing in index funds which creates an imbalance between where a stock is trading at and what it's actually worth"

"second he also warned of what would happen if everyone wanted to sell their Index Fund at the exact same time and how that would negatively affect all of these smaller stocks held within the index"

"See normally when you buy a stock that entitles you to some voting rights in the company and if you own enough of a stock you could eventually do a hostile takeover and own Twitter but in this case when you're buying into an index fund you're really owning a small piece of the basket with its value based on the contents within it not the stocks themselves That means if this trend continues three fund managers would dominate 81 percent of the voting content to virtually every large U.S corporation"

"the Harvard law professor John Coates argued that in the near future just 12 management professionals meaning a dozen people not a dozen management committees or firms mind you will likely have practical power over the majority of U.S public companies"

"Vanguard did the research to find out how much of an impact index funds have on the market and the result was not much in fact they found that index funds only accounted for one percent of all daily trading volume and the other 99 was from active Traders hedge funds and individual investors meaning that no day-to-day Index Fund investing was not distorting the market"

"with the S P 500 you do have a high concentration of tech stocks with the top 10 making up almost 30 percent of the overall index"