Joseph Moore

And that's the index fund revolution.

If you go to any competent advisor, they're going to tell you a lot of what you need to do is put it into index funds.

And by the way, that's fine.

I buy index funds.

But what index funds were supposed to be when they were invented in the 70s and 80s was a chance to buy the index itself for low cost.

Because we forget in the 1920s, 30s, 40s, 50s, 60s, no one could buy an index.

So if you look back at the index and use that to create your historical chart, you forget no one owned it.

Because to own it, you would have to buy 100 shares of every company in the index, which was a million dollars back then.

It's like 12 million today.

No one owned the index unless they were already wildly wealthy.

So now the everyday person could own the index.

And it was supposed to be the ant on the back of an elephant.

You're getting a free ride from this massive market that's doing all the hard work of price discovery.

And all you get to do is just ride pretty much for free through that marketplace.

It's a great idea.

But the problem is it's no longer an ant on the elephant.

It's now an ant army that has swarmed the entire elephant and is biting it because it only has one order from the ant queen.

Buy.

At what price?

Any price.