I can only speculate as to what is going to happen but my hunch is that in the long term the gap between returns from index fonds and savings books is going to become a great deal smaller as more people are willing to shoulder risk for companies and thus risk premiums go down
Doesn't that suggest people on average have had a misplaced fear of stock (indices) in the past, and that capital is now more efficiently allocated? Sounds like it would make the world better off.
> Doesn't that suggest people on average have had a misplaced fear of stock (indices) in the past.
Yes, I think this bit is pretty much agreed upon today. Hence the run for indices.
> and that capital is now more efficiently allocated?
That sounds likely to me.
> Sounds like it would make the world better off.
As tempting as it is to argue one way or another ... I think that's an impossible statement to make.
But like I initially said, it's all just speculation anyhow. Tbh these kind of discussions are inherently whacky. Chances are everything you've quoted from me is flawed on so many levels if one takes a closer look.
Discussing finance is mostly a fool's errand.
Doesn't that suggest people on average have had a misplaced fear of stock (indices) in the past, and that capital is now more efficiently allocated? Sounds like it would make the world better off.