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,
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