Passive/index investing creates momentum in large-cap stocks because index funds are market-cap weighted (larger companies get more capital), causing winners to compound (larger → attract more index capital → larger → more capital), while smaller companies are starved of capital regardless of fundamentals.
causalpending
Speaker
Anthony ChilupatiEvidence Quote
“the index investing passive investing is that in essence, all that is is momentum investing because it's a you're buying index which is market cap weighted. So, the money that you're investing is going to the largest market cap companies. Those companies continue to grow. They drag the index higher... there's really two indexes. There's the Mag 7 and the sloppy 493.”
Source
No. 1 Forensic Accountant: The Coming AI Collapse | Anthony Scilipoti— The Knowledge Project PodcastCreated: 8/11/2026, 12:09:33 AM
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