Passive investing boom is creating a ‘frightening’ risk for markets, Morgan Stanley says

1) Flows from active to passive funds increased to nearly $500 billion in the first half of 2017.

2) This trend is frightening, as it may prevent active managers from helping to stabilize markets.

3) Passive funds also have a risk of "cascading", amplifying market downturns http://ift.tt/2t5cfhc

Submitted July 10, 2017 at 08:17AM by rexmorrow
via http://ift.tt/2sWOeh4

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