Dave Collum: Indexing demand has driven market overvaluation

Dave Collum: Indexing demand has driven market overvaluation
Indexing demand drives overvaluation

Dave Collum suggests that current market overvaluation results from high demand, particularly in a post-indexing environment. According to Collum, most major contributors to this trend have emerged after the rise of indexing, underscoring its impact on market valuations.

The comment reflects ongoing debates over the influence of indexing on asset prices and the broader investment landscape.

Collum has previously warned of risks in adjacent financial sectors. He compared the private credit and private equity world to a capsizing event in recent comments on market concerns. In a separate post, Collum argued that private equity and private credit are too closely linked, calling the relationship unsustainable.

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