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MrLucchese December 10th, 2015 6:08pm

In recent years, institutional investors have come to hold nearly three quarters of the aggregate value of corporate America. Their impact on the economy is subject to great debate amongst scholars. Do institutional investors hinder economic growth?

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mfjd1948 rural johnson co iowa
12/15/15 6:50 am

Institutional investors actually help stablize the market.

12/10/15 4:30 pm

*Hamilton rolling over in his grave*

Liberty 4,032,064
12/10/15 4:07 pm

To the contrary, they likely result in better decisions being made.

blockfisher Clinton, CT
12/10/15 12:36 pm

Those institutional investors represent the vast majority of 401k and 403b and other pension/ retirement contributions. It is the general public driving these investments as a whole not a handful of wealthy investors. This is how the stock market should be. While holding a large amount of financial muscle I feel that it is less susceptible to irrational behavior than the average individual had they made that same investment directly.

cpaswr just say the letters
12/10/15 11:40 am

They can hinder growth. Institutional investors can make or break a stock based upon their buying and selling behavior. If they panic, they can bring down the entire market.

Carolynn new jersey
12/10/15 11:22 am

They can, but it depends if that money is sitting in those institutions or if it's being invested into the population. What do you think?

MrLucchese If curious, ask.
12/10/15 11:25 am

I think it exacerbates a concentration and storing of wealth. I also believe that to be a problem tangent to this one. Of the papers I'm citing, there are mixed beliefs, but almost all of them are firmly yes or firmly no. However, they tend to focus on different aspects in their evaluation, and that complicates the issue of validating or invalidating a definitive answer on my part.

MrLucchese If curious, ask.
12/10/15 11:09 am

Inspired by a final paper I'm writing, currently.