economy

Don't Blame Passive Investors If SpaceX Is Mispriced

Index funds don't misallocate capital — that's what stock pickers do

Don't Blame Passive Investors If SpaceX Is Mispriced

TL;DR

  • Index funds do not misallocate capital.
  • Active stock pickers are the ones who misallocate capital.
  • Passive investing is a more efficient method of capital allocation.