[fancymcpoopoo]

Are index funds the biggest amoral pyramid scheme in existence today? It’s incredible how the prevailing advice is to indiscriminately contribute to the largest profiteering organizations. Its like encouraging everyone to go to college. No way it'll go tits up when time to retire.

[georgeecollins]

I think you are making the argument-- poorly formed, frankly-- that if indexed investments become a big enough share of stock investing it will drive up the price beyond the fundamental value of equities more so than just investing individual equities.

The stock market response to "liberation day" implies that stocks don't all move together as you would expect if indexing was driving everything. Certain FANG stocks did very poorly, some mid cap or European stocks did great. The market is still trying to respond to the perceived actual value of companies, not just the expectation that more indexes will pile in and buy.

If people over invest in anything, including equities, the return on those investments will decline and bubbles will form. That can happen with the purchase of selective equities or with indexes. What Vanguard has done has probably not changed the market as much as lowering the cost to participate in it.