The latest letter to investors from Elliott Investment Management has 26 pages of commentary from Paul Singer. In this article we look at Elliott's views on Index Harvesting, Herding, Concentrating, and the impact of Megatech Companies.
Also, we analyze Singer's worries regarding inflation and monetary policy.
Stay tuned for more coverage on this.
Impact Of Index Investing On Creating Bubbles
The majority of investors today invest in companies whose market value increases, rather than in companies whose fundamental value rises. This is compatible with the trend-following approach which has the potential to generate large bubbles. This indexation trend is increasing and is replacing active investing causing the inertial effects to become even more powerful.
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