Or an investment. Re: @LoftyAi
Hypothesis: Anything people are advised to buy automatically (at the market price, but regardless of what it is) will eventually become overpriced and thus a mistake to buy.
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What are some examples? First thing that came to mind for me was my automated biweekly VTSAX purchase. Is that what you're talking about?
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"Blue-chip" stocks were one of the first.
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Not if we're talking about *union membership*
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yes ar least true for the finance products that were created by private companies in germany for pensions with tax advantages
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Is this a criticism of index funds?
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I think it would be if people actually followed the advice. I tell all my friends to do index funds. About 1 in 5 has money in index funds because they just they believe that it’s impossible for an index fund to do better than an actively managed fund.
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Money looses it function of real value signal -> self-fulfilling prophecy not backed by any fundamentals (buyers subjective (manual) valuation) -> boom -> bust. Reminds me of both the Hayekian and behavioral theory of business cycle:https://www.nber.org/papers/w12570
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Only on the margin. Consumer surplus is usually high for most consumers of a given product, and the surplus goes down, but it’s still positive. Only negative for the marginal user.
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In a perfect information symmetry, yes. If the advice doesn't reach the mass to fill the gap to market price, this hypothesis won't hold.
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