Robert Shiller on what worries him about passive investing from CNBC.

“The problem is that if you are talking about passive indexing, that is something that is really free-riding on other people's work. So people say, 'I'm not going to try to beat the market. The market is all-knowing.' But how in the world can the market be all-knowing, if nobody is trying — well, not as many people — are trying to beat it? ... The strength of this country was built on people who watched individual companies. They had opinions about them. All this talk of indexes, it's a little bit diluting of our intellect. It becomes more of a game. It's a chaotic system. It's kind of pseudoscience to think these indexes are perfect, and all I need is some kind of computer-model instead of thinking about business.” 

– Nobel Prize-winning economist Robert Shiller on CNBC

November 14, 2017