Agreed. But, companies are owned primarily by funds that in turn are exposed. If there is some pressuring to save real estate, it’s not the C suite, it’s the stockholding giants
I think this doesn't get enough attention. The biggest shareholders in many companies are index funds like Vanguard and BlackRock, which often have the right to vote on behalf of the shares in their ETFs. Their interests are in ensuring the entire ETF goes up, and a real estate deleveraging would do the opposite.
> Their interests are in ensuring the entire ETF goes up...
Things like automatic enrolment in 401K plans, or automatically bumping employee contributions by 1 percent will also benefit the broad market and funds.
Yes, as does curing COVID and protecting the environment.[1] And on the less good side: broad-based price hikes instead of fighting with the competition over market share in a race to the bottom.[2] It remains to be seen whether ETF ownership is connected to "greedflation", but I believe so.
Comments
Agreed. But, companies are owned primarily by funds that in turn are exposed. If there is some pressuring to save real estate, it’s not the C suite, it’s the stockholding giants
I think this doesn't get enough attention. The biggest shareholders in many companies are index funds like Vanguard and BlackRock, which often have the right to vote on behalf of the shares in their ETFs. Their interests are in ensuring the entire ETF goes up, and a real estate deleveraging would do the opposite.
Things like automatic enrolment in 401K plans, or automatically bumping employee contributions by 1 percent will also benefit the broad market and funds.
Yes, as does curing COVID and protecting the environment.[1] And on the less good side: broad-based price hikes instead of fighting with the competition over market share in a race to the bottom.[2] It remains to be seen whether ETF ownership is connected to "greedflation", but I believe so.
[1] https://newsletterhunt.com/emails/12216
[2] https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2632024