close
MENU
Margin Call
13 mins to read

Home bias plus passive investment equals distorted markets

ANALYSIS: Suggestion that markets inflated by home bias potentially have greater downside if markets do suffer a serious crash.

New Zealanders investing in domestic equities get the benefit of imputation credits.

Advocates of passive investing will generally claim that the combined impact of passive investors on the relative market pricing of different equities is minimal.

The key point that they make is that most passive investors hold securities in proportion to their representation in benchmark indices,

Want to read more? It's easy.

Choose your best value subscription option

Student

Exclusive offer for uni students studying at a New Zealand university (valued at $499).
Individual
Group membership
NBR Marketplace
NZ Aviation News

Yearly Premium Online Subscription

NZ$499.00 / yearly

Monthly Premium Online Subscription

NZ$44.95 / monthly

Smartphone Only Subscription

NZ$24.95 / monthly

Premium Group Membership 10 Users

NZ$350+GST / monthly

$35 per user - Pay by monthly credit card debit

Premium Group Membership 20 Users

NZ$600+GST / monthly

$30 per user - Pay by monthly credit card debit

Premium Group Membership 50 Users

NZ$1250+GST / monthly

$25 per user - Pay by monthly credit card debit

Premium Group Membership 100 Users

NZ$1875+GST / monthly

$18.75 per user - Pay by monthly credit card debit

Yearly Premium Online Subscription + NBR Marketplace

NZ$499.00 / yearly

Aviation News - Monthly

NZ$14.95 / monthly

Already have an account? Login
Nicholas Bagnall Tue, 20 Feb 2024
News tip? Question? Typo? Let us know: editor@nbr.co.nz
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Home bias plus passive investment equals distorted markets
Margin Call,
102755
true