Traders work on the floor of the New York Stock Exchange. The short-term benefits of so-called “passive investing” can have dangerous implications in the long term. Photo: Bloomberg

The fatal flaw passive investments suffer from

While growing in popularity as a cheaper and easier option, taken at the macro level the form of investment undermines supply and demand – not a good thing

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Traders work on the floor of the New York Stock Exchange. The short-term benefits of so-called “passive investing” can have dangerous implications in the long term. Photo: Bloomberg
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