Passive Flows do not just Move Prices: They Change the Slope of Price Discovery.

The article explores how passive investment flows impact markets beyond just moving prices, arguing they also alter the slope of price discovery. It extends the author's earlier work on the "Index Event Horizon," suggesting passive investing changes how information is incorporated into asset prices. This would interest readers curious about market microstructure, ETFs, or unintended consequences of passive investing. The piece offers a nuanced take on a debate often oversimplified as just "flows move prices."

Category: Finance

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