FYI: Even when using indexes, our investment decisions have an impact on the market.
Adam Smith’s invocation of the “invisible hand” has probably generated more discussion than any topic in economics. While often used as a shorthand for “market forces,” the point Smith makes in his seminal work, “Wealth of Nations,” often gets lost. His argument at its core is that people acting in their own self-interest are “led by an ‘invisible hand’ to promote an end which was no part of his intention.”
Regards,
Ted
http://www.etf.com/sections/blog/invisible-octopus
Comments
Really? In the words of Trump, "Who knew?!".
His argument at its core is that people acting in their own self-interest are “led by an ‘invisible hand’ to promote an end which was no part of his intention.”
This is the essence of Objectivism. Invisible Hand? No part of his intention? How convenient.
I don't see how anything is proving Adam Smith. Sophistry at its best. Now I need to research Nadig to see if this was an accident or he is Bullshit Artist by profession. Better yet, first,let me say something intelligent like "Value investing really works", and drop in Warren Buffets name for effect for my self promotion.
In short, Smith understood that the invisible hand is often benign, but not always.
The invisible hand is benign by accident. This notion that everyone acting in their own self-interest would benefit everyone is IMO flawed. Some would have us believe that self-interest is what has kept our world from disintegrating. I beg to differ. It has been sacrifices of others to the detriment of oneself, which is the reason.